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Sheridan Googal owns a garage and is contemplating purchasing a tire retreading machine for $19,820. After estimating costs and revenues, Sheridan projects a net cash
Sheridan Googal owns a garage and is contemplating purchasing a tire retreading machine for $19,820. After estimating costs and revenues, Sheridan projects a net cash inflow from the retreading machine of $3,100 annually for 10 years. Sheridan hopes to earn a return of 8% on such investments. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the retreading operation? (Round answer to 2 decimal places, eg. 25.25.) Present value $ Should Sheridan Googal purchase the retreading machine? Sheridan Googal purchase the retreading machine
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