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10. A piece of equipment costs $100,000 and will have a 10 year life. If purchased, it would provide inflows of $15,500 per year for

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10. A piece of equipment costs $100,000 and will have a 10 year life. If purchased, it would provide inflows of $15,500 per year for the first 6 years, and 12,000 per year for the last 4 years. If the interest rate is 7.1% C/Q, (2 MARKS) A) What is the Net Present Value of the investment opportunity? YES B) Should you purchase the equipment? NO

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