Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $12,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $3,300 annually for 6 years. Barney hopes to earn a return of 12% on such investments.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

What is the present value of the retreading operation? (Round answer to 2 decimal places, e.g. 25.25.)

Should Barney Googal purchase the retreading machine?

purchase the retreading machine.