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What is the present value of the retreading operation

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Reference no: EM133050906

Question - Crane Googal owns a garage and is contemplating purchasing a tire retreading machine for $13,820. After estimating costs and revenues, Crane projects a net cash inflow from the retreading machine of $2,600 annually for 7 years. Crane hopes to earn a return of 6% on such investments.

Required - What is the present value of the retreading operation?

Reference no: EM133050906

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