Dobson Contractors is considering buying equipment at a cost of $74,000. The equipment is expected to generate cash flows of $15,200 per year for eleven years and can be sold at the end of eleven years for $5,800. The discount rate is 11%. Assume the equipment would be paid for on the first day of year one, but that all other cash flows occur at the end of the year. Ignore income tax considerations. (FV of $1, PV of $1, FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided.) a. Calculate the present value of net cash flows. b. Should Dobson Contractors purchase the machine? Complete this question by entering your answers in the tabs below. Required A Required B Calculate the present value of net cash flows. (Do not round intermediate calculations. Round final answer to the nearest whole dollar.) Present value of net cash flows

Dobson Contractors is considering buying equipment at a cost of $74,000. The equipment is expected to generate cash flows of $15,200 per year for eleven years and can be sold at the end of eleven years for $5,800. The discount rate is 11%. Assume the equipment would be paid for on the first day of year one, but that all other cash flows occur at the end of the year. Ignore income tax considerations. (EV of \$1. PV of \$1, EVA of S1, and PVA of \$1). (Use appropriate factor(s) from the tables provided.) a. Calculate the present value of net cash flows. b. Should Dobson Contractors purchase the machine? Complete this question by entering your answers in the tabs below. Calculate the present value of net cash flws. (Do not round intermediate calculations. Round final answer to the nearest whole dollan)