Sheridan Inc. manufactures snowsuits. Sheridan 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, Sheridan spent $55,000 to keep it operational. The existing sewing machine can be sold today for $245,795. 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 $389,300 2 399,900 3 410,000 4 425,500 5 432,400 6 434,500 7 438,000 4 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 $98,800 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 eg. -45 or parentheses eg. (45). Round present value answer to O 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 Sheridan should purchase the new machine to replace the existing machine