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What is the present value of the retreading operation

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Mark Barton owns a garage and is contemplating purchasing a tire retreading machine for $18,000. After estimating costs and revenues, Mark projects a net cash flow from the retreading machine of $3,300 annually for 8 years. Mark hopes to earn a return of 10 percent on such investments. What is the present value of the retreading operation? Should Mark purchase the retreading machine?

Reference no: EM13531017

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