ZuoTi.Pro
Question

Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of...

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 $239,855. 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 2 400,900 3 411,000 4 425,700 5 432,400 6 435,400 7 436,900 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 $380,600. This new equipment would require maintenance costs of $94,400 at the end of the fifth year. The cost of capital is 9%. Click here to view PV 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 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Calculate the net present value.

Table3Present Value of 1

(n)

Periods

4%

5%

6%

7%

8%

9%

10%

11%

12%

15%

 1

.96154

.95238

.94340

.93458

.92593

.91743

.90909

.90090

.89286

.86957

 2

.92456

.90703

.89000

.87344

.85734

.84168

.82645

.81162

.79719

.75614

 3

.88900

.86384

.83962

.81630

.79383

.77218

.75132

.73119

.71178

.65752

 4

.85480

.82270

.79209

.76290

.73503

.70843

.68301

.65873

.63552

.57175

 5

.82193

.78353

.74726

.71299

.68058

.64993

.62092

.59345

.56743

.49718

 6

.79031

.74622

.70496

.66634

.63017

.59627

.56447

.53464

.50663

.43233

 7

.75992

.71068

.66506

.62275

.58349

.54703

.51316

.48166

.45235

.37594

 8

.73069

.67684

.62741

.58201

.54027

.50187

.46651

.43393

.40388

.32690

 9

.70259

.64461

.59190

.54393

.50025

.46043

.42410

.39092

.36061

.28426

10

.67556

.61391

.55839

.50835

.46319

.42241

.38554

.35218

.32197

.24719

11

.64958

.58468

.52679

.47509

.42888

.38753

.35049

.31728

.28748

.21494

12

.62460

.55684

.49697

.44401

.39711

.35554

.31863

.28584

.25668

.18691

13

.60057

.53032

.46884

.41496

.36770

.32618

.28966

.25751

.22917

.16253

14

.57748

.50507

.44230

.38782

.34046

.29925

.26333

.23199

.20462

.14133

15

.55526

.48102

.41727

.36245

.31524

.27454

.23939

.20900

.18270

.12289

16

.53391

.45811

.39365

.33873

.29189

.25187

.21763

.18829

.16312

.10687

17

.51337

.43630

.37136

.31657

.27027

.23107

.19785

.16963

.14564

.09293

18

.49363

.41552

.35034

.29586

.25025

.21199

.17986

.15282

.13004

.08081

19

.47464

.39573

.33051

.27615

.23171

.19449

.16351

.13768

.11611

.07027

20

.45639

.37689

.31180

.25842

.21455

.17843

.14864

.12403

.10367

.06110
Table4Present Value of an Annuity of 1

(n)

Payments

4%

5%

6%

7%

8%

9%

10%

11%

12%

15%

 1

  .96154

  .95238

  .94340

  .93458

 .92593

 .91743

 .90909

 .90090

 .89286

 .86957

 2

 1.88609

 1.85941

 1.83339

 1.80802

1.78326

1.75911

1.73554

1.71252

1.69005

1.62571

 3

 2.77509

 2.72325

 2.67301

 2.62432

2.57710

2.53130

2.48685

2.44371

2.40183

2.28323

 4

 3.62990

 3.54595

 3.46511

 3.38721

3.31213

3.23972

3.16986

3.10245

3.03735

2.85498

 5

 4.45182

 4.32948

 4.21236

 4.10020

3.99271

3.88965

3.79079

3.69590

3.60478

3.35216

 6

 5.24214

 5.07569

 4.91732

 4.76654

4.62288

4.48592

4.35526

4.23054

4.11141

3.78448

 7

 6.00205

 5.78637

 5.58238

 5.38929

5.20637

5.03295

4.86842

4.71220

4.56376

4.16042

 8

 6.73274

 6.46321

 6.20979

 5.97130

5.74664

5.53482

5.33493

5.14612

4.96764

4.48732

 9

 7.43533

 7.10782

 6.80169

 6.51523

6.24689

5.99525

5.75902

5.53705

5.32825

4.77158

10

 8.11090

 7.72173

 7.36009

 7.02358

6.71008

6.41766

6.14457

5.88923

5.65022

5.01877

11

 8.76048

 8.30641

 7.88687

 7.49867

7.13896

6.80519

6.49506

6.20652

5.93770

5.23371

12

 9.38507

 8.86325

 8.38384

 7.94269

7.53608

7.16073

6.81369

6.49236

6.19437

5.42062

13

 9.98565

 9.39357

 8.85268

 8.35765

7.90378

7.48690

7.10336

6.74987

6.42355

5.58315

14

10.56312

 9.89864

 9.29498

 8.74547

8.24424

7.78615

7.36669

6.98187

6.62817

5.72448

15

11.11839

10.37966

 9.71225

 9.10791

8.55948

8.06069

7.60608

7.19087

6.81086

5.84737

16

11.65230

10.83777

10.10590

 9.44665

8.85137

8.31256

7.82371

7.37916

6.97399

5.95424

17

12.16567

11.27407

10.47726

9.76322

9.12164

8.54363

8.02155

7.54879

7.11963

6.04716

18

12.65930

11.68959

10.82760

10.05909

9.37189

8.75563

8.20141

7.70162

7.24967

6.12797

19

13.13394

12.08532

11.15812

10.33560

9.60360

8.95012

8.36492

7.83929

7.36578

6.19823

20

13.59033

12.46221

11.46992

10.59401

9.81815

9.12855

8.51356

7.96333

7.46944

6.25933
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer mi Calculation of Net Present Value Year Cash Flows PV factor@9% $389,000 0.91743 $400,900 0.84168 $411,000 0.77218 $4

0 0
Add a comment
Know the answer?
Add Answer to:
Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of...

    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 $240,164. 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 $390,800 2...

  • Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of...

    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 $246,028. 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...

  • Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of...

    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 $241,846. 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 2 $390,600...

  • Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of...

    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 $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 $389.700 400,800...

  • Hillsong Inc, manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 millio...

    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 $242,006. 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 $389,300 2...

  • Exercise 12-3 (Video) Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at...

    Exercise 12-3 (Video) 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 $241,533. 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: $389,600...

  • Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of...

    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 $240,352. 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 $390,600 2...

  • Exercise 12-3 (Video) Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at...

    Exercise 12-3 (Video) 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 $241,293. 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...

  • er 1201 Exercise 12-3 (Video) Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing...

    er 1201 Exercise 12-3 (Video) 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 $243.175. 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...

  • Your answer is partially correct. Try again. Hillsong Inc, manufactures snowsuits. Hillsong is considering purchasing a...

    Your answer is partially correct. Try again. 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 $242,828. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT