Vorteck Inc. manufactures snowsuits. Vorteck is considering purchasing a new s

Vorteck Inc. manufactures snowsuits. Vorteck is considering purchasing a new sewing machine at a cost of $2.5 million. Its existing machine was purchased five
years ago at a price of $1.8 million; six months ago Vorteck spent $55000 to keep it operational. The existing sewing machine can be sold today for $260885.
The new sewing machine would require a one-time $85000 training cost. Operating costs would decrease by the following amounts for years 1 to 7:

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 $380100. This new
equipment would require maintenance costs of $95300 at the end of the fifth year. The cost of capital is 9%.

Instructions Calculate the net present value. (If net present value is negative enter with either a (-) sign preceding the number or
(parenthesis) around the number. Round computations and final answer for present value to 0 decimal places e.g. 125. Round computations for Discount Factor to
5 decimal places.)