Question: Stuck on this please help, trying to find the net present value Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at

Stuck on this please help, trying to find the net present value

Stuck on this please help, trying to find the net present valueHillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine

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 keep it operational. The existing sewing machine can be sold today for $243,257. 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 $390,900 N 399,900 W 410,400 4 425,200 5 432,600 435,300 437,700 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 $379,700. This new equipment would require maintenance costs of $98,400 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 as. -45 or parentheses e3. (45). Round present value answer to 0 decimal places, as. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Calculate the net present value. Net present value $

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