3. A tractor and mower costs $32,000 at the present time. You can earn a net return of $6,500 at the ends of years 1 through 6. The equipment will be worth $4,000 when you are done using it at the end of year 6. Calculate the net present value of the tractor- mower investment using a discount rate of 8%. 4. A saw mill for cutting wood costs $29.000 at the present time. You can earn a net return of $7,000 at the end of year 1, $7,200 at the end of year 2, $7,400 at the end of year 3. and $7,500 at the end of year 4 The equipment will be worth $7,500 when you are done using it at the end of year 4. Calculate the net present value of the mill using a discount rate of 8% 5. Based on NPV, which investment looks better? Explain why this comparison is not a good idea. 6. Find the annuity which is equivalent each of the above investments NPV (questions 3 and 4). Based on the annuity equivalent, which investment is better? Why