3. A piece of equipment has a current value of 80 and current earnings of 10. To operate the equipment, the owner must make an initial investment of 20. Then, the equipment is expected to have a useful life of 10 years. Throughout its useful life, it is expected to make 12% return, i.e., return on equity. However, during these 10 years, the owner must also invest in maintenance as shown in the table below: Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 20 24 28.8 34.56 26.9 30.4 15.9 16.8 17.8 18.9 Assume that the weighted average cost of capital is 10%. Perform the following tasks: a. Compute earning and free-cash-flow generated over the life of the equipment. Compute the present value of this project. b. marks] [7 marks] [5.5 [Total: 12.5 marks]