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Monroe Corporation is considering the purchase of new equipment. The equipment will cost $43,000 today....

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Accounting

Monroe Corporation is considering the purchase of new equipment. The equipment will cost $43,000 today. However, due to its greater operating capacity, Monroe expects the new equipment to earn additional revenues of $7,000 by the end of each year for the next 10 years.
Required:
1-a. Assuming a discount rate of 11% compounded annually, calculate the present value of annuity. (FV of $1,PV of $1,FVA of $1, and PVA of $1)
1-b. Should Monroe make the purchase?
Complete this question by entering your answers in the tabs below.
Assuming a discount rate of 11.0% compounded annually, calculate the present value of annuity. (Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places.)
Present value of annuity
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