Exercise 24-3 Hillsong Inc. manufactures snowsuits. Hillsong isconsidering purchasing a new sewing machine at a cost of $2.45million. Its existing machine was purchased five years ago at aprice of $1.8 million; six months ago, Hillsong spent $55,000 tokeep it operational. The existing sewing machine can be sold todayfor $240,438. The new sewing machine would require a one-time,$85,000 training cost. Operating costs would decrease by thefollowing amounts for years 1 to 7: Year 1 $390,900 2 399,800 3410,100 4 425,400 5 434,000 6 434,900 7 436,400 The new sewingmachine would be depreciated according to the declining-balancemethod at a rate of 20%. The salvage value is expected to be$379,100. This new equipment would require maintenance costs of$94,000 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 todetermine the following: (If net present value is negative thenenter with negative sign preceding the number e.g. -45 orparentheses e.g. (45). Round present value answer to 0 decimalplaces, e.g. 125. For calculation purposes, use 5 decimal places asdisplayed in the factor table provided.) Calculate the net presentvalue. Net present value $ Determine whether Hillsong shouldpurchase the new machine to replace the existing machine? Click ifyou would like to Show Work for this question: