Mark Barton owns a garage and is contemplating purchasing a tire retreading machine for $27,000. After estimating costs and revenues, Mark projects a net cash flow from the retreading machine of $4,400 annually for 11 years. Mark hopes to earn a return of 12 percent on such investments.

What is the present value of the retreading operation? (Round answer to 2 decimal places, e.g. 25.25.)

Brief Exercise D-17 Mark Barton owns a garage and is contemplating purchasing a tire retreading machine for $27,000. After estimating costs and revenues, Mark projects a net cash flow from the retreading machine of $4,400 annually for 11 years. Mark hopes to earn a return of 12 percent on such investments. 0 TABLE 4 Present Value of an Annuity of 1 10% 12% 15% 96154 95238 9434092593 91743 90909 90090 8928686957 1.88609 8594 83339 1.78326 59 173554 1.71252 169005 1.62571 77509 2.72325 2.67301 2.57710 2.53130 248685 2.44371 2.40183 228323 62990 3.5459534651 3.31213 3.23972 3.16986 3.10245 3.03735 285498 4.45182 4.32948 4.21236 399271 388965 3.79079 3.69590 3.60478 3.35216 24214 5.075694.91732 462288 448592 435526 423054 4.11141 3.78448 6.00205 5.78637 5.58238 5.20637 503295 486842 471220 456376 416042 .732746.46321 6.20979 574664 5.53482 5.33493 5.14612 4.96764 448732 435337.10782 680169 624689 5.99525 5.75902 5.53705 5.32825 4.77158 8.11090 7.72173 736009 6.71008 641766 6.14457 588923 5.65022 5.01877 8.76048 8.30641 7.88687 7.13896 6.80519 6.49506 6.20652 5.937705.2337 .38507 8.86325 838384 7.53608 7.160736.81369 6.49236 6.19437 542062 98565 9.39357 8.85268 7.90378 7.48690 7.10336 6.74987 6.423555.58315 0.56312 9.89864 9.29498 8.24424 7.786157 36669 6.98187 662817 5.72448 1.11839 10.37966 9.71225 8.559488.06069 7.60608 7.19087 6.81086 5.84737 1.65230 10.83777 10.10590 8.851378.31256 7.82371 7.37916 6.97399 5.95424 12.16567.27407 10.47726 912164 8.543638.02155 7.54879 7.11963 6.04716 2.65930 11.68959 10.82760 9.37189 875563 8.20141 7.70162 7 24967 6.12797 3.13394 12.08532 15812 9.60360 8.95012 8.36492 7.83929 7 36578 6.19823 3.59033 12.4622 11.469929.81815 9.12855 8.51356 7.96333 7.46944 625933 10 1 2 18 What is the present value of the retreading operation? (Round answer to 2 decimal places, e.g. 25.25) 9 Present value Should Mark purchase the retreading machine? Click if you would like to Show Work for this question: Open Show Work