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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
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 $ 246,028. 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 $389,000 2 399,000 3 410,000 4 425,000 5 432,000 6 434,500 7 436,000
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