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Michael Googal owns a garage and is contemplating purchasing a tire retreading machine for $11,500. After estimating costs and revenues, Michael propects a net cash
Michael Googal owns a garage and is contemplating purchasing a tire retreading machine for $11,500. After estimating costs and revenues, Michael propects a net cash inflow from the retreading machine of $2.530 annually for 9 years, Michael hopes to earn a return of 11% on such investments. What is the present value of the retreading operation? Should Michael Googal purchase the retreading machine? (For calculation purposes, use 5 decimal places as displayed in the foctor table provided. Round answer to 2 decimal places, e.s. 15.25.) Click here to view the factor table. (a) The present value of the retreading operation is (b) Michaci Googal purchase the retreading machine
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