2. A small welding business owner is considering a new contract. The project requires purchasing a new welding truck for $75,000 with a residual value of 15% of its original value after eight years. It is estimated to yield annual net returns of $15,000 for six years starting in four years. Should the project be undertaken, if the small business owner would like to secure a 3% yield rate? (4 marks)

2. A small welding business owner is considering a new contract. The project requires purchasing a new welding truck for $75,000 with a residual value of 15% of its original value after eight years. It is estimated to yield annual net returns of $15,000 for six years starting in four years. Should the project be undertaken, if the small business owner would like to secure a 3% yield rate? (4 marks)