Robert Williams owns a garage and is contemplating purchasing a tire retreading machine for $11,820. After estimating costs and revenues, Robert projects a net cash inflow from the retreading machine of $2,700 annually for 7 years. Robert hopes to earn a return of 11% on such investments. What is the present value of the retreading operation? (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 5.27541. Round answer to 2 decimal places, e.g. 25.25.) Present value $ Should Robert purchase the retreading machine? Robert purchase the tire retreading machine.

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.