factor table: https://education.wiley.com/content/Kimmel_Financial_Accounting_9e/media/simulations/hidden/Wey_Fin_9e_pvtables.pdf

Question 6 of 14 - 14 Hillsong Inc, manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2,45 million. Its existing machine was purchased five years ago at a price of $1.8 million six months ago. Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $245,788. 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 $389,300 2 399.900 3 410.000 4. 425,500 5 432.400 6 434,500 7 438.000 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 $379,400. This new equipment would require maintenance costs of $98,800 at the end of the fifth year. The cost of capital is 9% Question 6 of 14 -14 TIT capital is 9% Click here to view the factor table. Use the rat present value method to determine the following: Of net present volue lis nepotive then enter with negative sin poeding the numberes 45 or parentheses es (45), Round present value answer to decimal places, es, 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Calculate the net present value. Net present values Determine whether Hillsong should purchase the new machine to replace the casting machine? e Textbook and Media