Crane Inc. manufactures snowsuits. Crane is considering purchasing a new sewing machine at a

cost of $$2\mathrm{.}45$ million. Its existing machine was purchased $5$ years ago at a price of $$1\mathrm{.}8$ million; six

months ago, Crane spent $$55,000$ to keep it operational. The existing sewing machine can be sold

today for $$241,835.$ The new sewing machine would require a one$-$time, $$85,000$ training cost.

Operating costs would decrease by the following amounts for years $1$ to $7$:

Year $1$ $$389,500$

$2399,400$

$3411,000$

$4425,400$

$5433,700$

$6435,300$

$7437,300$

The new sewing machine would be depreciated according to the declining$-$balance method at a

rate of $20\%.$ The salvage value is expected to be $$379,500.$ This new equipment would require

maintenance costs of $$94,500$ at the end of the fifth year. The cost of capital is $9\%.$

Click here to view the factor table.

Use the net present value method to determine the following: $($If net present value is negative then

enter with negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).$ Round present value

answer to $0$ decimal places, e$.$g$.125.$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided.$)$ Calculate the net present value.