Grady Corp. is considering the purchase of a new piece of equipment. The equipment costs $50,400, and will have a salvage value of $5,060 after seven years. Using the new piece of equipment will increase Grady's annual cash flows by $6,070. Grady has a hurdle rate of 14%. (Future Value of $1,Present Value of $1,Future Value Annuity of $1,Present Value Annuityof $1.)(Use appropriate factor from the PV tables.)

a. What is the present value of the increase in annual cash flows? (Round your answer to 2 decimal places.) l b. What is the present value of the salvage value? (Round your answer to 2 decimal places.) l c. What is the net present value of the equipment purchase? (Negative value should be indicated by a minus sign. Round your intermediate calculation and final answer to 2 decimal places.) l d. Based on financial factors, should Grady purchase the equipment? 0 Yes A kl