Ivanhoe Googal owns a garage and is contemplating purchasing a tire retreading machine for $$11,820.$ After estimating costs and

revenues, Ivanhoe projects a net cash inflow from the retreading machine of $$2,800$ annually for $7$ years. Ivanhoe hopes to earn a

return of $12\%$ on such investments.

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What is the present value of the retreading operation? $($For calculation purposes, use $5$ decimal places as displayed in the factor table

provided. Round answer to $2$ decimal places, e$.$g$.25\mathrm{.}25.)$

Present value $

Should Ivanhoe Googal purchase the retreading machine?

Ivanhoe Googal

purchase the retreading machine.