Next > Question 3 View Policies Current Attempt in Progress Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million six months ago Hillsong spent $55.000 to kasp it operational. The exciting sewing maching can be sold today for $242.003. 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 $299,700 2 400,000 3 410.800 4 425,700 5 6 434 600 7 437,000 The new sewing machine would be depreciated according to the declining-balance method at a rate of 2016. The salvage value is expected to be $990.100. This new equipment would require maintenance costs of $95.700 at the end of the fifth year. The cost of capitalis 95. Click here to view the factor table. Use the net present value method to determine the following of net present value is negative then enter with negative sign preceding the number eg.-45 or parentheses eg. (45). Round present value answer to decimal places, eg 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Calculate the nat present value Net present value S Determine whether Hillsong should purchase the new machine to replace the existing machine? e Textbook and Media Save for later Attempts: 0 of 3 used Submit Answer TIL Nect> Question 4 --/1 View Policies Current Attempt in Progress BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Machine A Machine B Original cost $74,600 $192,000 Estimated to @years years Salvage value S20,400 S39,900 Estimated annual cash inflows Estimated annual cash outflows $5,130 $9.990 Click here to view the factor table. Calculate the nat present value and profitability index of each machine. Assume a 9% discount rate. If the net present value is negative, use either a negative sign preceding the numbers-45 or parentheses (451 Round answer for present value to decimal places, eg 125 and profitability index to 2 decimal places, eg 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Machine A Machine B Net present value Profitability index Which machine should be purchased? should be purchased e Textbook and Media Save for later Attempts: 0 of 3 used Submit Answer