Mark Googal owns a garage and is contemplating purchasing a tire retreading machine for $16,500. After...
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Mark Googal owns a garage and is contemplating purchasing a tire retreading machine for $16,500. After estimating costs and revenues, Mark projects a net cash inflow from the retreading machine of $3,630 annually for 10 years. Mark hopes to earn a return of 11% on such investments. What is the present value of the retreading operation? Should Mark Googal purchase the retreading machine? (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (Round answer to 2 decimal places, e.g. 15.25.) Click here to view the factor table. (a) The present value of the retreading operation is (b) Mark Googal should purchase the retreading machine. Mark Googal owns a garage and is contemplating purchasing a tire retreading machine for $16,500. After estimating costs and revenues, Mark projects a net cash inflow from the retreading machine of $3,630 annually for 10 years. Mark hopes to earn a return of 11% on such investments. What is the present value of the retreading operation? Should Mark Googal purchase the retreading machine? (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (Round answer to 2 decimal places, e.g. 15.25.) Click here to view the factor table. (a) The present value of the retreading operation is (b) Mark Googal should purchase the retreading machine.
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