Oriole Inc. manufactures snowsuits. Orioles 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, Oriole spent $55,000 to keep it operational. The existing sewing machine can be sold today for $211,855. 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 2 3 4 5 6 $390,600 399.400 411,000 425.900 432,000 434.600 436.400

Oriole Inc. manufactures snowsuits. Oriole 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, Oriole spent \\( \\$ 55,000 \\) to keep it operational. The existing sewing machine can be sold today for \\( \\$ 211,855 \\). 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 : 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 \\( \\$ 94,200 \\) at the end of the fifth year. The cost of capital is \9. 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 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. Net present value \\( \\quad \\$ \\)