Wildhorse inc. manufactures snowsuits. Wildhorse 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 ogo, Widhorsc spent $55,000 to keep it operational. The existing sewing machine can be sold today for $245,090. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for vears 1 to 7 : The new sewing machine would be depreciated according to the declining-batance method at a rate of 20 . The salvage value is expected to be $380,800. This new equipment would requiremaintenance costs of $99,000 at the end of the fifth year. The cost of capitalis 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 0 decimal places, e.s. 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 Wildhorse should purchase the new machine to replace the existing machine? TABLE 1 Future Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{11}{|l|}{\begin{tabular}{c} (ni) \\ Periods \end{tabular}} \\ \hline Periods & 4% & 5 & 6% & 7% & 8% & 9 & 10% & 11% & 12% & 15% \\ \hline 0 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1,00000 & 1.00000 \\ \hline 1 & 1.04000 & 1.05000 & 1.06000 & 1.07000 & 1.08000 & 1.09000 & 1.10000 & 1.11000 & 1.12000 & 1.15000 \\ \hline 2 & 1.08160 & 1.10250 & 1.12360 & 1.14490 & 1.16640 & 1.18810 & 1.21000 & 1.23210 & 1.25440 & 1.12250 \\ \hline 3 & 1.12486 & 1.15763 & 1.19102 & 1,22504 & 1.25971 & 1.29503 & 133100 & 136763 & 1.40493 & 152088 \\ \hline 4 & 1.16986 & 1.21551 & 1.26245 & 131080 & 1.36049 & 1.41158 & 1.46410 & 1.51807 & 1.57352 & 1.74901 \\ \hline 5 & 1.21665 & 1.27628 & 1.33823 & 1.40255 & 1.46933 & 1.53862 & 1.61051 & 1.68506 & 1.76234 & 201136 \\ \hline 6 & 1.26532 & 1,34010 & 1.41852 & 1.50073 & 1.58687 & 1.67710 & 1.77156 & 1.87041 & 1.97382 & 2.31306 \\ \hline 7 & 1.31593 & 1.40710 & 150363 & 1.60578 & 1.71382 & 1.82804 & 1.94872 & 2.07616 & 2.21068 & 2.66002 \\ \hline 8 & 1. 36557 & 1.47746 & 159385 & 171819 & 1.85093 & 1.99256 & 2.14359 & 2.30454 & 2.47596 & 305902 \\ \hline 9 & 1.42331 & 1.55113 & 1.65948 & 1.83846 & 1.99900 & 2.17189 & 2.35795 & 2.55803 & 2.77308 & 3.51786 \\ \hline 10 & 1,49024 & 1.62889 & 1.79085 & 1.96715 & 2.15892 & 2.36736 & 2.59374 & 2.63942 & 3.10585 & 4,04556 \\ \hline II & 1.53945 & 1,71034 & 1.89830 & 2.10485 & 2.33104 & 2.58043 & 2.85312 & 3.15176 & 1.47855 & 4.65239 \\ \hline 12 & 1.00103 & 1.79586 & 2.01220 & 2.25219 & 2.51817 & 2.81267 & 1.13843 & 3.49845 & 3.89598 & 5.35025 \\ \hline i) & 1.66507 & 1.88565 & 2.13293 & 240985 & 2.71962 & 3.06581 & 3,45227 & 348328 & 4.4349 & 0.15279 \\ \hline 14 & 1.73168 & 197093 & 2200% & 25753 & 2.93719 & 3.34173 & 3.79750 & 431044 & 4.85711 & 707571 \\ \hline is & 1.80094 & 207891 & 2.39656 & 2.75903 & 3.17217 & 3.04248 & 4.17725 & 478459 & 5.47157 & 8,13706 \\ \hline 10 & 1.87298 & 2.18287 & 2.54035 & 2.95216 & 1.42594 & 3.97031 & 4.59497 & 5.31059 & 0.13039 & 9.35762 \\ \hline 17 & 1.94790 & 2.29202 & 2.69277 & 3.15882 & 3.70002 & 4.32763 & 5.05447 & 5.89509 & 686004 & 10.76126 \\ \hline 18 & 202582 & 2.40662 & 2.85434 & 3.37993 & 3.90602 & 4.71712 & 5.55902 & 6.54355 & 7.68997 & 12.37545 \\ \hline 19 & 2.10685 & 2.52695 & 3.02560 & 3.61653 & 431570 & 5.14166 & 6.11591 & 7,26314 & 8.61270 & 14.23177 \\ \hline 20 & 2.19112 & 2.05330 & 3.20714 & 3.86968 & 4.66006 & 3,60441 & 6.72750 & 8006231 & 9.64629 & 16.36654 \\ \hline \end{tabular} TABLE 2 Future Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (n) \\ Payments \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & 1.00000 & 1.00000 & 1.00000 & 1.0000 & 1.00000 & 1.00000 & 1,00000 & 1.00000 & 1.00000 & 1,00000 \\ \hline 2 & 2.04000 & 2.05000 & 2.06000 & 2.0700 & 2.08000 & 2.09000 & 2.10000 & 2,11000 & 2.12000 & 2.15000 \\ \hline 3 & 3.12160 & 3.15250 & 3.18360 & 3,2149 & 3.24640 & 3.27810 & 3,31000 & 3.34210 & 3,37440 & 3.47250 \\ \hline 4 & 4.24646 & 4.31013 & 4.37462 & 4.4399 & 4.50611 & & & 4.70973 & 4.77933 & 490 \\ \hline 5 & 5,41632 & 5.52563 & 5.63709 & 5,7507 & 5.86660 & 5,98471 & 6.10510 & 6.22780 & 6.35285 & 6.74 \\ \hline 6 & 6.63298 & 6.80191 & 6,97532 & 7.1533 & 7,33592 & 7.52334 & 7.71561 & 7.91286 & .11519 & 8.753 \\ \hline 7 & 7.89829 & 8.14201 & 8.39384 & 8.6540 & 8.92280 & 9.20044 & 9,4 & 9.78327 & 10. & 1 \\ \hline 8 & 9.21423 & 9.54911 & 9.89747 & 10.2598 & 3 & & 11 & & & 1 \\ \hline 9 & 10.58280 & 11.02656 & 11.49132 & 11.9 & & & & & & \\ \hline 10 & 12.00611 & 12.57789 & 13.18079 & 13.8164 & 14,48656 & 15.19293 & 15.93743 & 16.72201 & 1754874 & 20,30 \\ \hline II & 13,48635 & 14.20679 & 14.97164 & 15.7836 & 16.64549 & 17.56029 & 18.53117 & 19.56143 & 20.65458 & 3 \\ \hline 12 & .02581 & 15.91713 & 16.86994 & 17.8885 & 18,97713 & 20.14072 & 21.3 & 22,71319 & 13 & 29 \\ \hline 13 & .62684 & 17.71298 & 18.88214 & 20.1406 & 9530 & 22.95339 & 24.5 & & & 2 \\ \hline 14 & 29191 & 19.59863 & 21.01507 & 22.5505 & 24.21492 & 26.01919 & & & 32 & \\ \hline 15 & 20.02359 & 21.57856 & 23.27597 & 25,1290 & 27.15211 & 29.36092 & 31,77248 & 34,40536 & 3727972 & 475 \\ \hline 16 & 21.82453 & & 25.67253 & 1 & 30.32428 & 33.00340 & 35.94973 & 39,18995 & 42.75328 & 571 \\ \hline 17 & & & & 02 & 3 & & & & & \\ \hline 18 & & 8,13238 & 0.90565 & 33.99 & 37.45 & 134 & 45.599 & 50. & 55. & 75 \\ \hline 19 & & & 5999 & 37,3790 & 41.446 & 46.01 & 51.15909 & 56,93 & 63.43 & 88,21 \\ \hline 20 & & 595 & 6.78559 & 40.9955 & 45.76196 & 51.16012 & 57.27500 & 64.20283 & 72.05244 & 10244358 \\ \hline \end{tabular} TABLE 3 Present Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (n) \\ Periods \end{tabular} & 4% & 5% & 6% & 7% & 8% & 906 & 10% & 11% & 12% & 15% \\ \hline 1 & 96154 & 95238 & 94340 & 0.93458 & 92593 & 91743 & 90909 & 90000 & 89286 & 86957 \\ \hline 2 & 92456 & 90703 & 89000 & 0.87344 & 85734 & 84168 & 82645 & 81162 & 79719 & .75614 \\ \hline 3 & .88900 & 86384 & 83962 & 0.81630 & 79383 & 77218 & 75132 & 73119 & 71178 & 65752 \\ \hline 4 & .85480 & $2270 & .79209 & 0.76290 & 73503 & 70843 & 68301 & 65873 & .03552 & 57175 \\ \hline 5 & 82193 & 78353 & 74726 & 0.71299 & 68058 & 64993 & 62092 & 59345 & $6743 & 49718 \\ \hline 6 & .79031 & .74622 & 70496 & 0.66634 & .63017 & .59627 & 56447 & 53464 & 50663 & 43233 \\ \hline 7 & .75992 & .71068 & .60506 & 0.62275 & 58349 & 54703 & 51316 & 48166 & 45235 & 37594 \\ \hline 8 & 73069 & 67684 & 62741 & 0.58201 & 54027 & 50187 & 46651 & .43393 & 40388 & 32690 \\ \hline 9 & .70259 & 64461 & 59190 & 0.54393 & 50025 & 46043 & 42410 & 39092 & 36061 & 28426 \\ \hline 10 & .67556 & 61391 & 55839 & 0.50835 & 46319 & .42241 & 38554 & 35218 & 32197 & 24719 \\ \hline 11 & .64958 & 58468 & 52679 & 0.47509 & 4288 & 38753 & 35049 & 31728 & 28748 & 21494 \\ \hline 12 & .62460 & 55684 & A9697 & 0.44401 & 39711 & 35554 & 31863 & 28584 & 75668 & 18091 \\ \hline 13 & .60057 & 53032 & 46884 & 0.41496 & 36770 & 32618 & 28966 & 25751 & 22917 & 16253 \\ \hline 14 & 57748 & 50507 & 44230 & 0.38782 & 34046 & 29925 & 26333 & 23199 & .20462 & 14133 \\ \hline 15 & 55526 & 48102 & 41727 & 0.36245 & 31524 & 27454 & 23939 & 20000 & 18270 & 12289 \\ \hline 16 & 53391 & 45811 & 39365 & 0.33873 & 29189 & .25187 & 21763 & 18329 & 16312 & 10087 \\ \hline 17 & 51337 & 43630 & 37136 & 0.31657 & 27027 & 23107 & 19785 & 10063 & 14564 & 09293 \\ \hline 18 & .49363 & 41552 & 35034 & 0.29586 & 25025 & 21199 & 17980 & 15282 & 13004 & .0cos1 \\ \hline 19 & 47464 & 39573 & 33051 & 0.27615 & 23171 & 19489 & 16.351 & 13708 & 11611 & 07027 \\ \hline 20 & 45639 & 37689 & 31180 & 0.25842 & 21455 & .17843 & 14864 & 12403 & 10367 & 06110 \\ \hline \end{tabular} TABLE 4 Present Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{11}{|l|}{\begin{tabular}{c} (n) \\ Payments \end{tabular}} \\ \hline Payments & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & 96154 & 95238 & 94340 & 0.93458 & 92593 & 91743 & 90909 & 90090 & 89286 & .86957 \\ \hline 2 & 1.88609 & 1.85941 & 1.83339 & 1.80802 & 1.78326 & 1.75911 & 1.73554 & 1.71252 & 1.69005 & 1.62571 \\ \hline 3 & 2.77509 & 2.72325 & 2.67301 & 2.62432 & 257710 & 253130 & 2.48685 & 2.44371 & 2.40183 & 2.28323 \\ \hline 4 & 3.62990 & 3.54595 & 3.46511 & 3,38721 & 331213 & 3.23972 & 3.16986 & 3.10245 & 3.03735= & 2.85498 \\ \hline 5 & 4.45182 & 4,32948 & 4.21236 & 4.10020 & 3.99271 & 3.88965 & 3.79079 & 3.69590 & 3.60478 & 3,35216 \\ \hline 6 & 5.24214 & 5.07569 & 4.91732 & 4.76654 & 4.62288 & 4.48592 & 435526 & 4.23054 & 4.11141 & 3,78448 \\ \hline 7 & 6.00205 & 5.78637 & 5.58238 & 5.38929 & 5.20637 & 5.03295 & 4.86842 & 4.71220 & 4.56376 & 4.16042 \\ \hline 8 & 6.73274 & 6.46321 & 6.20979 & 5.97130 & 5,74664 & 5.53482 & 533493 & 5.14612 & 4,96764 & 4,48732 \\ \hline 9 & 7.43533 & 7.10782 & 6.80109 & 6.51523 & 6.24689 & 5.99525 & 5,75902 & 5.53705 & 532825 & 4,77158 \\ \hline 10 & 8.11090 & 7.72173 & 7,30009 & 7,02358 & 6.71008 & 6.41766 & 6.14457 & 5.88923 & 5.65022 & 5.01877 \\ \hline 11 & 8.76048 & 8.30641 & 7.88687 & 7.49867 & 7.13896 & 6.80519 & 6,49506 & 6.20652 & 5.93770 & 5.23371 \\ \hline 12 & 938507 & 8.86325 & 838384 & 7.94269 & 753608 & 7.16073 & 6.81369 & 6.49236 & 6.19437 & 5,42002 \\ \hline 13 & 998565 & 939357 & 8.85268 & 8.35765 & 7900378 & 7.48690 & 7,10336 & 6. 74987 & 6.42355 & 5.58315 \\ \hline 14 & 10.56312 & 9.89864 & 929498 & 8.74547 & 8.24424 & 7.78615 & 7,36669 & 6.98187 & 6.62817 & 5.72448 \\ \hline 15 & 11.11839 & 10,37966 & 9.71225 & 9.10791 & 8.55948 & 800009 & 7.60008 & 7.19087 & 6.81086 & 5.84737 \\ \hline 16 & 11.65230 & 10.83777 & 10.10590 & 944665 & 8085137 & 8.31256 & 7,82371 & 7,37916 & 6.97399 & 5.95424 \\ \hline 17 & 12.16567 & 11.27407 & 10,47726 & 9.76322 & 9.12164 & 8.54363 & 802155 & 7.54879 & 7.11063 & 604716 \\ \hline 18 & 12.65930 & 11.08959 & 10.82700 & 1005909 & 937189 & 8.75563 & 8.20141 & 7,70162 & 1724907 & 6.12797 \\ \hline 19 & 13,13394 & 12.08532 & 11.15812 & 10.33560 & 9.60360 & 8.95012 & 8.36492 & 783929 & 736578 & 6.19321 \\ \hline 20 & 13.59033 & 12.46221 & 11.46992 & 10.39401 & 9.81815 & 9.12855 & 8.51356 & 7,9633 & 746244 & 6.25033 \\ \hline \end{tabular}