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Current Attempt in Progress Blossom Inc. manufactures snowsuits. Blossom is considering purchasing a new sewing machine at a cost of $ 2 . 4 5
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Blossom Inc. manufactures snowsuits. Blossom is considering purchasing a new sewing machine at a cost of $ million. Its existing machine was purchased years ago at a price of $ million; six months ago, Blossom spent $ to keep it operational. The existing sewing machine can be sold today for $ The new sewing machine would require a onetime, $ training cost. Operating costs would decrease by the following amounts for years to :
The new sewing machine would be depreciated according to the decliningbalance method at a rate of The salvage value is expected to be $ This new equipment would require maintenance costs of $ at the end of the fifth year. The cost of capital is
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Use the net present value method to determine the following: If net present value is negative then enter with negative sign preceding the number eg or parentheses eg Round present value answer to decimal places, eg For calculation purposes, use decimal places as displayed in the factor table provided.
Calculate the net present value.
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