S Exercise 13-19 Cheyenne Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the master budget for the first 2 quarters of 2017. remains in this process is the cash budget. The following information has been collected from other portions of the master budget and elsewhere. $39,270 32,725 5,236 183,260 183,260 9,163 Beginning cash balance Required minimum cash balance Payment of income taxes (2nd quarter) Professional salaries: 1st quarter 2nd quarter Interest from investments (2nd quarter) Overhead costs: 1st quarter 2nd quarter Selling and administrative costs, including $2,618 depreciation: 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from patients: 1st quarter 2nd quarter 100,793 130,900 65,450 91,630 65,450 15,708 307,615 497,420 -12 2 Exercise 16-3 Ayayai ne manufactures showsuits. Avayal is considering purchasing a new sewing machine at a cost of $2.45 milion. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Ayayal spent $55.000 to keep it operational. The casting sewing machine can be sold today for $241,70%. 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 $390,100 400,600 3 410,600 4 425,000 5 432,900 434,500 7 436,400 ts by Study 6 The new sewing machine would be deprecated in cording to the declining balance method at a rate of 20%. The age value is expected to be 5379,900. This new equipment would require maintenance costs of $94,600 at the end of the fifth year. The cost of capital is 9% Click here to view Pytable Use the net present value method to determine the following: Calculate the net present value (Ir net present value is negative then enter with negative ston preceding the number or parentheses e.o. (45). Round present value answer to a decimal places... 125. For calculation purposes se 5 de places as died in the factor table provided.) Net present value $ Should Ayaval purchase the new machine to replace the existing machine