Grady Corp. is considering the purchase of a new plece of equipment. The equipment costs $51,400, and will have a salvage value of $5,170 after seven years. Using the new piece of equipment will increase Grady's annual cash flows by $6,110. Grady has a hurdle rate of 10%. (Future Value of $1, Present Value of $1, Future Value Annulty of $1, Present Value Annulty of $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.) Present Value b. What is the present value of the salvage value? (Round your answer to 2 decimal places.) Present Value 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.) Net Present Value d. Based on financial factors, should Grady purchase the equipment? Yes No