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3. A used food truck for selling food at events costs $35,000. at the present time. You think you can earn a net return of
3. A used food truck for selling food at events costs $35,000. at the present time. You think you can earn a net return of $6,700 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 food truck investment using a discount rate of 6.5%. 4. A nice set of bounce houses and associated equipment for entertaining youngsters at events costs $28,000 at the present time. You think you can earn a net return of $6,000 at the end of year 1, $6,200 at the end of year 2, $6,400 at the end of year 3, and $6,500 at the end of year 4. The equipment will be worth $8,600 when you are done using it at the end of year 4. Calculate the net present value of the bounce house equipment using a discount rate of 6.5%. 5. Based on NPV, which investment looks better? Explain why this comparison is not a good idea
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