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BEG-22 Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $12,820. After estimating costs and revenues, Bamey projects a net

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BEG-22 Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $12,820. After estimating costs and revenues, Bamey projects a net cash inflow from the retreading machine of $2.700 annually for 7 years. Barney hopes to earn a return of9% on such investments. What is the present value of the retreading operation? Should Barney Gioosal purchase the retreading BRIEF EXERCISE. BEG-22 The tire retreading machine present value of the future cash flows is BEG-23 Snyder Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, $25,000, Year 2, 530,000, and Year 3, $40,000. Sayder requires a minnnum rate of return of l %. What s the maximum price Snyder should pay for this equipment? BRIEF EXERCISE-BEG-23 TO achieve a minimum rate of return of 11%, Snyder Company should pay no more than

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