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Question 3: Investment over time? (show all your work. Points will be deducted for no work) (20 points) A rental company is looking to purchase
Question 3: Investment over time? (show all your work. Points will be deducted for no work) (20 points) A rental company is looking to purchase equipment for a marginal resource cost of $50000. The company will earn a revenue of $4000 per year for 5 years. At year 5, the company will also earn a salvage value of the equipment of $10000. The interest on the borrowing is 7% a. Fill in the table below Year Future Value Present Value Discount Factor (percentage) 2 4 un 1. Complete the table above 2. Should this firm invest, show why or why not
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