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Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $20,820. After estimating costs and revenues, Barney projects a net cash

Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $20,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $4,500 annually for 7 years. Barney hopes to earn a return of 10% on such investments.

What is the present value of the retreading operation?

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