help please!!!

Sandhill Inc. manufactures snowsuits. Sandhill is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased 5 years ago at a price of $1.8 million; six months ago, Sandhill spent $55,000 to keep it operational. The existing sewing machine can be sold today for $243,175. 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 : 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 $379,200. This new equipment would require maintenance costs of $95,900 at the end of the fifth year. The cost of capital is 9%. Read aloud Ask Bing Al of 4 C TABLE 1 Future Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (ni) \\ Periods \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 0 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 \\ \hline 1 & 1.04000 & 000 & 1.06000 & 1.07000 & 3000 & 1.09000 & 1.10000 & 1.11000 & 1.12000 & 5000 \\ \hline 2 & 1.08160 & 250 & 1.12360 & 1.14490 & 640 & 1.18810 & 1.21000 & 1.23210 & 1.25440 & \begin{tabular}{l} 50 \\ 88 \end{tabular} \\ \hline 3 & 2486 & 63 & 1.19102 & 1.22504 & 71 & 1.29503 & 1.33100 & 1.36763 & 1,40493 & \begin{tabular}{l} 88 \\ 01 \end{tabular} \\ \hline 4 & 1.16986 & 551 & 1.26248 & 1.31080 & 049 & 1.41158 & 1.46410 & 1.51807 & 1.57352 & 01 \\ \hline 5 & 1.21665 & 1.27628 & 1.33823 & 1.40255 & 1.46933 & 1.53862 & 1.61051 & 1.68506 & 1.76234 & 2,01136 \\ \hline 6 & 1.26532 & 1.34010 & 1.41852 & 1.50073 & 1.58687 & 1.67710 & 1.77156 & 1.87041 & 7382 & \begin{tabular}{l} 2.31306 \\ 2.66002 \end{tabular} \\ \hline 7 & 1 & 1.4 & 363 & 1.60578 & 2 & 04 & 872 & 16 & 596 & \\ \hline 8 & 1. & 1.47746 & 9385 & 1.71819 & & 1.99256 & 2.14359 & 54 & \begin{tabular}{l} 7596 \\ 7308 \end{tabular} & \\ \hline 9 & 1.42331 & 1.5 & 8948 & 1.83846 & 1. & 2.17189 & 2.35795 & 03 . & \begin{tabular}{l} 2.77308 \\ 3.10585 \end{tabular} & \\ \hline 10 & 1.48024 & 1.62889 & 1.79085 & 1.96715 & 2.15892 & 2.36736 & 2.59374 & 2.83942 & & 04556 \\ \hline 11 & 1.53945 & 1.71034 & 1898 & 2.10485 & 2.33164 & 2.58043 & 2.85312 & 3,15176 & & \begin{tabular}{l} 65239 \\ 35025 \end{tabular} \\ \hline 12 & 16 & 1.795 & \begin{tabular}{l} 2 \\ 2 \end{tabular} & & 2.5 & 2 & & & \begin{tabular}{l} 598 \\ 349 \end{tabular} & \\ \hline 13 & 1,66507 & & \begin{tabular}{l} 3293 \\ 6090 \end{tabular} & 2.409 & 2.71962 & 3.06581 & 3.45227 & \begin{tabular}{l} 3.88328 \\ 4.31044 \end{tabular} & \begin{tabular}{l} 4,36349 \\ 4,88711 \end{tabular} & \begin{tabular}{l} 6.1 \\ 7.0 \end{tabular} \\ \hline 16. & 98 & 2.18287 & & 2.95216 & 3,42594 & 3.97031 & 4.59497 & 5.31089 & 6.13039 & 9.35762 \\ \hline 17 & 1.94790 & 2.29202 & & & 3.70002 & 4.32763 & & & 6.86604 & 10.76126 \\ \hline 18 & 2.02582 & 2.40062 & & 3.37993 & 3,99602 & 4.71212 & 5.55992 & 6.54355 & 7.68997 & 12,37545 \\ \hline 19 & 2.10685 & 2.52695 & & 3.616 & 431570 & 5.14166 & 6.11591 & 7.26334 & 8.61276 & 14,23177 \\ \hline 20 & 2.19112 & 2.65330 & 3.20714 & 3.86968 & 4.66096 & 5.60441 & 6.72750 & 8.06231 & 9.64629 & 16.36654 \\ \hline \end{tabular} TABLE 2 Future Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (ii) \\ Payments \end{tabular} & the & 5% & 6% & 7% & 8% & 9% & 10% & 115 & 12% & 15% \\ \hline 1 & 1.00000 & 1,00000 & 1.00000 & 1.0000 & 1.00000 & 1,00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 \\ \hline 2 & 2.04000 & 2.05000 & 2.06000 & 2,0700 & 2.08000 & 2.09000 & 2.10000 & \begin{tabular}{l} 2,11000 \\ 3.34210 \end{tabular} & \begin{tabular}{r} 2.12000 \\ 3.37440 \end{tabular} & \begin{tabular}{r} 2.15000 \\ 3.47250 \end{tabular} \\ \hline \begin{tabular}{l} 3 \\ 4 \end{tabular} & 3.12160 & \begin{tabular}{r} 3.15250 \\ 4.31013 \end{tabular} & \begin{tabular}{l} 3.18360 \\ 4.77462 \end{tabular} & \begin{tabular}{l} 3.2149 \\ 4.4309 \end{tabular} & \begin{tabular}{l} 3,24640 \\ 4,50611 \end{tabular} & \begin{tabular}{l} 3.27810 \\ 4.57313 \end{tabular} & \begin{tabular}{l} 3.31000 \\ 4.64100 \end{tabular} & \begin{tabular}{l} 3.34210 \\ 4.70973. \end{tabular} & 4.77933 & 4.47230 \\ \hline \begin{tabular}{l} 4 \\ 5 \end{tabular} & \begin{tabular}{r} 424646 \\ 5.41632 \end{tabular} & \begin{tabular}{l} 4.31013 \\ 5,52563 \end{tabular} & \begin{tabular}{l} 437462 \\ 5.63709 \end{tabular} & 5.7507 & 5.60660 & 5.98471 & 0.10510 & 6,22780 & 6.35285 & 674238 \\ \hline 6 & 0.03298 & 6.80191 & 6.97532 & 7.1533 & 733592 & 752334 & 271561 & 7.91280 & 8.11519 & 8,75374 \\ \hline 7 & 7.89829 & 3.14201 & 8.39384 & 8.0590 & 8.92280 & 9.20044 & 9.48717 & 9,78327 & 1008901 & 11.06080 \\ \hline 8 & 9.2t42z & 9.54911 & 9.89747 & 10.2595 & 10.03663 & 1102847 & 11.43589 & 11.85943 & 12.29969 & 13.72082 \\ \hline \begin{tabular}{l} 9 \\ 10 \end{tabular} & 1058280 & 11.02650 & 11.49132 & 11.9780 & 12.48756 & 1302104 & 13.57948 & 14.16397 & 14.77566 & 10.78584 \\ \hline 10 & 1200011 & 1257789 & 13.18029 & 138164 & 14.48656 & 15.19293 & 15.93743 & 1022201 & 17,54674 & 20.10372 \\ \hline 11 & 13.4645 & 1+20079 & 14.97104 & 15.730 & 16.64549 & 17.56029 & 1853117 & 19.50143 & 20.05458 & 2434920 \\ \hline 12 & 15.02581 & 15.91713 & 10.86994 & 17.4885 & 1897713 & 20.14072 & 21.38428 & 22.71349 & 24.1331 & 29.00167 \\ \hline \end{tabular} om (T) Read aloud Ask Bing Al +3of4 \begin{tabular}{rrrrrrrrrrr} 6 & 6.63298 & 6.80191 & 6.97532 & 7.1533 & 7.33592 & 7.52334 & 7.71561 & 7.91286 & 8.11519 & 8.75374 \\ 7 & 7.89829 & 8.14201 & 8.39384 & 8.6540 & 8.92280 & 9.20044 & 9.48717 & 9.78327 & 10.08901 & 11.06680 \\ 8 & 9.21423 & 9.54911 & 9.89747 & 10.2598 & 10.63663 & 11.02847 & 11.43589 & 11.85943 & 12.29969 & 13.72682 \\ 9 & 10.58280 & 11.02656 & 11.49132 & 11.9780 & 12.48756 & 13.02104 & 13.57948 & 14.16397 & 14.77566 & 16.78584 \\ 10 & 12.00611 & 12.57789 & 13.18079 & 13.8164 & 14.48656 & 15.19293 & 15.93743 & 16.72201 & 17.54874 & 20.30372 \\ 11 & 13.48635 & 14.20679 & 14.97164 & 15.7836 & 16.64549 & 17.56029 & 18.53117 & 19.56143 & 20.65458 & 24.34928 \\ 12 & 15.02581 & 15.91713 & 16.86994 & 17.8885 & 18.97713 & 20.14072 & 21.38428 & 22.71319 & 24.13313 & 29.00167 \\ 13 & 16.62684 & 17.71298 & 18.88214 & 20.1406 & 21.49530 & 22.95339 & 24.52271 & 26.21164 & 28.02911 & 34.35192 \\ 14 & 18.29191 & 19.59863 & 21.01507 & 22.5505 & 24.21492 & 26.01919 & 27.97498 & 30.09492 & 32.39260 & 40.50471 \\ 15 & 20.02359 & 21.57856 & 23.27597 & 25.1290 & 27.15211 & 29.36092 & 31.77248 & 34.40536 & 37.27972 & 47.58041 \\ 16 & 21.82453 & 23.65749 & 25.67253 & 27.8881 & 30.32428 & 33.00340 & 35.94973 & 39.18995 & 42.75328 & 55.71747 \\ 17 & 23.69751 & 25.84037 & 28.21288 & 30.8402 & 33.75023 & 36.97351 & 40.54470 & 44.50084 & 48.88367 & 65.07509 \\ 18 & 25.64541 & 28.13238 & 30.90565 & 33.9990 & 37.45024 & 41.30134 & 45.59917 & 50.39593 & 55.74972 & 75.83636 \\ 19 & 27.67123 & 30.53900 & 33.75999 & 37.3790 & 41.44626 & 46.01846 & 51.15909 & 56.93949 & 63.43968 & 88.21181 \\ 20 & 29.77808 & 33.06595 & 36.78559 & 40.9955 & 45.76196 & 51.16012 & 57.27500 & 64.20283 & 72.05244 & 102.44358 \\ \hline \end{tabular} TABLE 3 Present Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (ii) \\ Periods \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & 96154 & 95238 & 94340 & 0.93458 & 92593 & 91743 & 90909 & 90090 & 89286 & 86957 \\ \hline 2 & 92456 & 90703 & 89000 & 0.87344 & 85734 & 84168 & 82645 & .81162 & .79719 & .75614 \\ \hline 3 & 88900 & 86384 & 83962 & 0.81630 & 79383 & 77218 & .75132 & .73119 & .71178 & .65752 \\ \hline 4 & 85480 & 82270 & 79209 & 0.76290 & 73503 & .70843 & .68301 & 65873 & 63552 & \begin{tabular}{l} 57175 \\ 49718 \end{tabular} \\ \hline 5 & 82193 & .78353 & 174726 & 0.71299 & .68058 & .64993 & .62002 & .59345 & \begin{tabular}{l} 56743 \\ 50663 \end{tabular} & \begin{tabular}{l} 49718 \\ 43233 \end{tabular} \\ \hline 6 & 79031 & .74622 & .70496 & 0.60634 & 63017 & 59627 & 56447 & 53464 & \begin{tabular}{l} 50663 \\ 45235 \end{tabular} & \begin{tabular}{l} 43233 \\ 37594 \end{tabular} \\ \hline87 & 739012 & 71068 & 06506 & \begin{tabular}{l} 0.62275 \\ 0.58201 \end{tabular} & .58349 & 54703 & \begin{tabular}{l} 51316 \\ 46651 \end{tabular} & \begin{tabular}{l} 48166 \\ 43393. \end{tabular} & \begin{tabular}{l} 44235 \\ 40388 \end{tabular} & \begin{tabular}{l} 37594 \\ 32690 \end{tabular} \\ \hline \begin{tabular}{l} 8 \\ 9 \end{tabular} & \begin{tabular}{l} 73069 \\ 70259 \end{tabular} & \begin{tabular}{l} 67684 \\ 64461 \end{tabular} & \begin{tabular}{l} .62741 \\ 59190 \end{tabular} & \begin{tabular}{l} 0.58201 \\ 0.54393 \end{tabular} & \begin{tabular}{l} 54027 \\ 50025 \end{tabular} & \begin{tabular}{l} 50187 \\ 46043 \end{tabular} & \begin{tabular}{l} A6651 \\ 42410 \end{tabular} & & 36001 & \begin{tabular}{l} 32690 \\ 28426 \end{tabular} \\ \hline 10 & 67556 & \begin{tabular}{l} 64461 \\ 61391 \end{tabular} & \begin{tabular}{l} 59190 \\ 55839 \end{tabular} & 0.50835 & 46319 & 42241 & .38554 & 35218 & 32197 & \begin{tabular}{r} 28420 \\ 24719 \end{tabular} \\ \hline iI & 64958 & 58468 & 52079 & 0.47509 & 42888 & 38753 & 35049 & 31728 & 28748 & 21494 \\ \hline 12 & 62460 & 55684 & 49697 & 0.44401 & 39711 & 35554 & 31863 & 28584 & 25668 & 18691 \\ \hline 13 & .00057 & 53032 & 46884 & 0.41496 & 36770 & 32618 & 28966 & 25751 & 22917 & 16253 \\ \hline 14 & 57748 & 50507 & 44230 & 0.38782 & 34046 & 29925 & 26333 & 23199 & 20462 & .14133 \\ \hline 15 & 55526 & 48102 & 41727 & 0.36245 & 31524 & 27454 & 23939 & 20900 & 18270 & 12289 \\ \hline 16 & 53391 & 45811 & 39365 & 033873 & 29189 & 25187 & 21763 & 18829 & 16312 & 10687 \\ \hline & 51337 & 43630 & 37136 & 0.31657 & 27027 & 23107 & 19785 & 16963 & 14564 & 09293 \\ \hline is & 49363 & 41552 & 35034 & 029586 & 25025 & 21199 & 17986 & 15282 & 13004 & 08081 \\ \hline 19 & 47464 & 39573 & 33051 & 0.27615 & 23171 & 19449 & .16351 & 13768 & 11611 & 07027 \\ \hline 20 & 45639 & 37089 & 31180 & 0.25842 & 21455 & 17843 & 14864 & 12403 & 10367 & 06110 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} 13 \\ 14 \end{tabular} & \begin{tabular}{l} .60057 \\ 57748 \end{tabular} & \begin{tabular}{l} 53032 \\ 50507 \\ 4810? \end{tabular} & \begin{tabular}{l} 46884 \\ 44230 \\ 41727 \end{tabular} & \begin{tabular}{l} 0.41496 \\ 0.38782 \\ 0.36245 \end{tabular} & \begin{tabular}{l} 36770 \\ 34046 \\ 31524 \end{tabular} & \begin{tabular}{l} 32618 \\ 29925 \\ 27454 \end{tabular} & \begin{tabular}{l} 28500 \\ 26333 \\ 23939 \end{tabular} & \begin{tabular}{l} 23199 \\ 20900 \end{tabular} & \begin{tabular}{l} .20462 \\ .18270 \end{tabular} & \begin{tabular}{l} .14133 \\ .12289 \end{tabular} \\ \hline 15 & .55526 & .48102 & .41727 & & & & 21763 & .18829 & .16312 & .10687 \\ \hline \begin{tabular}{l} 16 \\ 17 \end{tabular} & \begin{tabular}{l} 53391 \\ 51337 \end{tabular} & \begin{tabular}{l} 45811 \\ 43630 \end{tabular} & \begin{tabular}{r} 39365 \\ 37136 \end{tabular} & \begin{tabular}{l} 0.33873 \\ 0.31657 \end{tabular} & \begin{tabular}{l} 29189 \\ 27027 \end{tabular} & \begin{tabular}{l} .25187 \\ .23107 \end{tabular} & .19785 & .16963 & .14564 & .09293 \\ \hline 18 & 49363 & .41552 & 35034 & 0.29586 & 25025 & 21199 & .17986 & .15282 & .13004 & .08081 \\ \hline 19 & .47464 & 39573 & .33051 & 0.27615 & 23171 & .19449 & .16351 & .13768 & .11611 & .07027 \\ \hline 20 & .45639 & 37689 & 31180 & 0.25842 & .21455 & .17843 & .14864 & .12403 & .10367 & .06110 \\ \hline \end{tabular} TABLE 4 Present Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (n) \\ Payments \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & .96154 & .95238 & 94340 & 0.93458 & 92593 & .91743 & .90909 & .90090 & .89286 & 86957 \\ \hline 2 & 1.88609 & 1.85941 & & 1.80802 & 1.78326 & 1.75911 & 1.73554 & 1.71252 & 1.69005 & 1.62571 \\ \hline 3 & 2.77509 & 2.72325 & 130 & 2432 & 2.57710 & 2.53130 & 2.48685 & 2.44371 & 2.40183 & 2.28323 \\ \hline 4 & 3.62990 & 3.54595 & 3.46511 & 3.38721 & 3.31213 & 3.23972 & 3.16986 & 3.10245 & 3.03735 & 2.85498 \\ \hline 5 & 4.45182 & 4.32948 & 4.21236 & 4.10020 & 3.99271 & 3,88965 & 3.79079 & 3.69590 & 3.60478 & 3.35216 \\ \hline \begin{tabular}{l} 6 \\ 7 \end{tabular} & 5.24214 & 5.07569 & 4,91732 & 4.76654 & 4.62288 & 4.48592 & 4.35526 & 4.23054 & \begin{tabular}{l} 4.11141 \\ 4.56376 \end{tabular} & \begin{tabular}{l} 3.78448 \\ 4.16042 \end{tabular} \\ \hline \begin{tabular}{l} 7 \\ 8 \end{tabular} & 205 & 5.78637 & & 5 & 5 & 5 & 2 & 0 & \begin{tabular}{l} 4,56376 \\ 4,96764 \end{tabular} & \begin{tabular}{l} 042 \\ 732 \end{tabular} \\ \hline 8 & 6.73274 & 6.46321 & 6.20979 & 5.97130 & 5 & 5 & & 12 & \begin{tabular}{l} 4.96764 \\ 5.32825 \end{tabular} & \begin{tabular}{l} 4.48732 \\ 4.77158 \end{tabular} \\ \hline 10 & & \begin{tabular}{l} 7.10782 \\ 7.72173 \end{tabular} & \begin{tabular}{l} 6.80169 \\ 7.36009 \end{tabular} & \begin{tabular}{l} 6.51523 \\ 7.02358 \end{tabular} & & \begin{tabular}{l} 5,99525 \\ 6.41766 \end{tabular} & \begin{tabular}{l} 5.75902 \\ 6.14457 \end{tabular} & \begin{tabular}{l} 5.53705 \\ 5.88923 \end{tabular} & 5.65022 & \begin{tabular}{l} 4.77158 \\ 5.01877 \end{tabular} \\ \hline II & 8.76048 & 8.30641 & 7.88687 & 7.49867 & 7.13896 & 6.80519 & 6.49506 & 6.20652 & 5,93770 & 5.23371 \\ \hline 12 & 9.38507 & 8.86325 & 8.38384 & 7.94269 & 7. & & 59 & 49236 & 0.19437 & \\ \hline 13 & 9.98565 & 9.39357 & 8.85268 & 8.35765 & 7.9 & 7.48690 & 7.10336 & 6.74987 & 6.42355 & 5,58315 \\ \hline 14 & 10.56312 & 9.89864 & 9.29498 & 8.7 & 8.24424 & 7.78615 & 736669 & 0.98187 & 6.62817 & 5.72448 \\ \hline 15 & 11.1 & 10.3 & 9.71225 & 9.10791 & 8.55948 & 8.06069 & 7.60608 & 7.19087 & 6.81086 & 584737 \\ \hline 16 & 11.65230 & 10.83777 & 10.10590 & 9.44665 & 8.85137 & 8.31256 & 7.82371 & 7,37916 & 6.97399 & 5.95424 \\ \hline 17 & 12.16567 & 11. & 10.47726 & & & 8.54363 & 8.02155 & 7.54879 & 7.11963 & \\ \hline 18 & 12.05930 & 11.68959 & 10.82760 & 10.0 & & & 820141 & 7.70162 & 7.2. & 6.1 \\ \hline 19 & 13.13394 & 12.08532 & 11.15812 & 10.33560 & 9.60360 & 8.95012 & 8.36492 & 7.83929 & 7.36578 & 6.19823 \\ \hline 20 & 13.5%033 & 12.46221 & 11.40992 & 1059401 & 9.81815 & 9.12855 & 8.51356 & 7.96333 & 7.46944 & 6.25933 \\ \hline \end{tabular} 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 es. 45 or parentheses es. (45). Round present value answer to 0 decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Calculate the net present value. Net present value $ Determine whether Sandhill should purchase the new machine to replace the existing machine