Question
Carla Vista Googal owns a garage and is contemplating purchasing a tire retreading machine for $12,820. After estimating costs and revenues, Carla Vista projects
Carla Vista Googal owns a garage and is contemplating purchasing a tire retreading machine for $12,820. After estimating costs and revenues, Carla Vista projects a net cash inflow from the retreading machine of $3,300 annually for 6 years. Carla Vista hopes to earn a return of 12% on such investments. Click here to view the factor table. (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.) Present value $ Should Carla Vista Googal purchase the retreading machine? Carla Vista Googal should purchase the retreading machine.
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