Grady Corporation is considering the purchase of a new piece of equipment. The equipment costs $$50,100$ and will have a salvage value of $$5,090$ after $9$ years. Using the new piece of equipment will increase Grady$$s annual net cash flows by $$6,080.$ Grady$$s cost of capital is $11\%.($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1)$

Required:

What is the present value of the increase in annual cash flows?

What is the present value of the salvage value?

What is the net present value of the equipment purchase?

Based on financial factors, should Grady purchase the equipment?