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 $239,855. 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 2 400,900 3 411,000 4 425,700 5 432,400 6 435,400 7 436,900 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 $380,600. This new equipment would require maintenance costs of $94,400 at the end of the fifth year. The cost of capital is 9%. Click here to view PV 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.

Table3Present Value of 1

(n) Periods	4%	5%	6%	7%	8%	9%	10%	11%	12%	15%
1	.96154	.95238	.94340	.93458	.92593	.91743	.90909	.90090	.89286	.86957
2	.92456	.90703	.89000	.87344	.85734	.84168	.82645	.81162	.79719	.75614
3	.88900	.86384	.83962	.81630	.79383	.77218	.75132	.73119	.71178	.65752
4	.85480	.82270	.79209	.76290	.73503	.70843	.68301	.65873	.63552	.57175
5	.82193	.78353	.74726	.71299	.68058	.64993	.62092	.59345	.56743	.49718
6	.79031	.74622	.70496	.66634	.63017	.59627	.56447	.53464	.50663	.43233
7	.75992	.71068	.66506	.62275	.58349	.54703	.51316	.48166	.45235	.37594
8	.73069	.67684	.62741	.58201	.54027	.50187	.46651	.43393	.40388	.32690
9	.70259	.64461	.59190	.54393	.50025	.46043	.42410	.39092	.36061	.28426
10	.67556	.61391	.55839	.50835	.46319	.42241	.38554	.35218	.32197	.24719
11	.64958	.58468	.52679	.47509	.42888	.38753	.35049	.31728	.28748	.21494
12	.62460	.55684	.49697	.44401	.39711	.35554	.31863	.28584	.25668	.18691
13	.60057	.53032	.46884	.41496	.36770	.32618	.28966	.25751	.22917	.16253
14	.57748	.50507	.44230	.38782	.34046	.29925	.26333	.23199	.20462	.14133
15	.55526	.48102	.41727	.36245	.31524	.27454	.23939	.20900	.18270	.12289
16	.53391	.45811	.39365	.33873	.29189	.25187	.21763	.18829	.16312	.10687
17	.51337	.43630	.37136	.31657	.27027	.23107	.19785	.16963	.14564	.09293
18	.49363	.41552	.35034	.29586	.25025	.21199	.17986	.15282	.13004	.08081
19	.47464	.39573	.33051	.27615	.23171	.19449	.16351	.13768	.11611	.07027
20	.45639	.37689	.31180	.25842	.21455	.17843	.14864	.12403	.10367	.06110

Table4Present Value of an Annuity of 1

(n) Payments	4%	5%	6%	7%	8%	9%	10%	11%	12%	15%
1	.96154	.95238	.94340	.93458	.92593	.91743	.90909	.90090	.89286	.86957
2	1.88609	1.85941	1.83339	1.80802	1.78326	1.75911	1.73554	1.71252	1.69005	1.62571
3	2.77509	2.72325	2.67301	2.62432	2.57710	2.53130	2.48685	2.44371	2.40183	2.28323
4	3.62990	3.54595	3.46511	3.38721	3.31213	3.23972	3.16986	3.10245	3.03735	2.85498
5	4.45182	4.32948	4.21236	4.10020	3.99271	3.88965	3.79079	3.69590	3.60478	3.35216
6	5.24214	5.07569	4.91732	4.76654	4.62288	4.48592	4.35526	4.23054	4.11141	3.78448
7	6.00205	5.78637	5.58238	5.38929	5.20637	5.03295	4.86842	4.71220	4.56376	4.16042
8	6.73274	6.46321	6.20979	5.97130	5.74664	5.53482	5.33493	5.14612	4.96764	4.48732
9	7.43533	7.10782	6.80169	6.51523	6.24689	5.99525	5.75902	5.53705	5.32825	4.77158
10	8.11090	7.72173	7.36009	7.02358	6.71008	6.41766	6.14457	5.88923	5.65022	5.01877
11	8.76048	8.30641	7.88687	7.49867	7.13896	6.80519	6.49506	6.20652	5.93770	5.23371
12	9.38507	8.86325	8.38384	7.94269	7.53608	7.16073	6.81369	6.49236	6.19437	5.42062
13	9.98565	9.39357	8.85268	8.35765	7.90378	7.48690	7.10336	6.74987	6.42355	5.58315
14	10.56312	9.89864	9.29498	8.74547	8.24424	7.78615	7.36669	6.98187	6.62817	5.72448
15	11.11839	10.37966	9.71225	9.10791	8.55948	8.06069	7.60608	7.19087	6.81086	5.84737
16	11.65230	10.83777	10.10590	9.44665	8.85137	8.31256	7.82371	7.37916	6.97399	5.95424
17	12.16567	11.27407	10.47726	9.76322	9.12164	8.54363	8.02155	7.54879	7.11963	6.04716
18	12.65930	11.68959	10.82760	10.05909	9.37189	8.75563	8.20141	7.70162	7.24967	6.12797
19	13.13394	12.08532	11.15812	10.33560	9.60360	8.95012	8.36492	7.83929	7.36578	6.19823
20	13.59033	12.46221	11.46992	10.59401	9.81815	9.12855	8.51356	7.96333	7.46944	6.25933