Question

Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $30,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $4,800 annually for 10 years. Barney hopes to earn a return of 8% on such investments.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

What is the present value of the retreading operation?

Answer 1

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