Your answer is partially correct. Blossom Inc. manufactures snowsuits. Blossom 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, Blossom spent $55,000 to keep it operational. The existing sewing machine can be sold today for $245,925. 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 2 399,000 2 410,000 4 425,000 5 432,000 6 434,500 7 436,000 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 $379,000. This new equipment would require maintenance costs of $94,000 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 O 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 $ 54517 Determine whether Blossom should purchase the new machine to replace the existing machine? No V eTextbook and Media Save for Later Attempts: 2 of 3 used Submit AnswerYour answer is partially correct. Cullumber Inc. wants to purchase a new machine for $31,420, excluding $1,300 of installation costs. The old machine was purchased 5 years ago and had an expected economic life of 10 years with no salvage value. The old machine has a book value of $2,200, and Cullumber Inc. expects to sell it for that amount. The new machine will decrease operating costs by $7,000 each year of its economic life. The straight-line depreciation method will be used for the new machine for a 6-year period with no salvage value. Click here to view the factor table. (a) Determine the cash payback period. (Round cash payback period to 2 decimal places, e.g. 10.53.) Cash payback period 4.36 years (b) Determine the approximate internal rate of return. (Round answer to O decimal places, e.g. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal rate of return 4.62289 % (c) Assuming the company has a required rate of return of 8%, determine whether the new machine should be purchased. The investment should V be accepted. eTextbook and Media Save for Later Attempts: 2 of 3 used Submit Answerx Your answer is incorrect. Blossom Oil Company.I is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $120,215 and will increase annual expenses by $65,000 including depreciation. The oil well will cost $400,000 and will have a $9.000 salvage value at the end of its 10year useful life. Calculate the annual rate of return. (Roundanswertodecimal places, 9.3. 13%.] Annual rate of return 125% 96 eTextbook and Media Save for Later Attempts: 1 Of 3 \"5130 Submit Answer Cullumber's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $280,000. A new salon will normally generate annual revenues of $67,975, with annual expenses (including depreciation) of $41,200. At the end of 15 years, the salon will have a salvage value of $77,000. Calculate the annual rate of return on the project. Annual rate of return 7.69 % eTextbook and Media Save for Later Attempts: 1 of 3 used Submit