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Pina Colada Company owns a garage and is contemplating purchasing a tire retreading machine. Pina...

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Accounting

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Pina Colada Company owns a garage and is contemplating purchasing a tire retreading machine. Pina Colada projects a net cash flow from the retreading machine of $12,400 annually for 7 years. It estimates a salvage value of $9,200 at the end of the asset's useful life. Pina Colada hopes to earn a return of 10% on such investments. What is net present value? (For calculation purposes, use 5 decimal places as displayed in the foctor table provided. Round answer to 2 decimal places, eg. 52.75.) Click here to view the factor table. Net present value $ Should Pina Colada purchase the retreading machine if it costs $62,000 ? Pina Colada Company owns a garage and is contemplating purchasing a tire retreading machine. Pina Colada projects a net cash flow from the retreading machine of $12,400 annually for 7 years. It estimates a salvage value of $9,200 at the end of the asset's useful life. Pina Colada hopes to earn a return of 10% on such investments. What is net present value? (For calculation purposes, use 5 decimal places as displayed in the foctor table provided. Round answer to 2 decimal places, eg. 52.75.) Click here to view the factor table. Net present value $ Should Pina Colada purchase the retreading machine if it costs $62,000

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