Question: Vinny Carpino owns a garage and is contemplating purchasing a tire retreading machine for $16,280. After estimating costs and revenues, Vinny projects a net cash

Vinny Carpino owns a garage and is contemplating purchasing a tire retreading machine for $16,280. After estimating costs and revenues, Vinny projects a net cash inflow from the retreading machine of $3,000 annually for 8 years. Vinny hopes to earn a return of 11% on such investments. What is the present value of the retreading operation? Should Vinny Carpino purchase the retreading machine?

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