Crane Companyowns a garage and is contemplating purchasing a tire retreading machine for $17,820. After estimating costs and revenues, Craneprojects a net cash inflow from the retreading machine of $3,800annually for 7years. Cranehopes to earn a return of 10% on such investments. What is the present value of the retreading operation? (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 5.27541. Round answer to 2 decimal places, e.g. 25.25.)

Present value

$enter the present value amount in dollars

Should Crane Companypurchase the retreading machine? Crane Companyselect an optionpurchase the tire retreading machine.