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


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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