Monroe Corporation is considering the purchase of new equipment. The equipment will cost $$43,000$ today. However, due to its greater operating capacity, Monroe expects the new equipment to earn additional revenues of $$7,000$ by the end of each year for the next $10$ years.

Required:

$1-$a$.$ Assuming a discount rate of $11\%$ compounded annually, calculate the present value of annuity. $($FV of $$1,PV$ of $$1,$FVA of $$1,$ and PVA of $$1)$

$1-$b$.$ Should Monroe make the purchase?

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Assuming a discount rate of $11\mathrm{.}0\%$ compounded annually, calculate the present value of annuity. $($Use tables, Excel, or a financial calculator. Round your answer to $2$ decimal places.$)$

Present value of annuity