4. Cindy has recently purchased for $1,000 an 10% 10-year bond paying interest annually. She is aware that changes in market rates of interest may cause the value of her investment to fluctuate. Prepare a comparative schedule showing the market value of the $1,000 bond assuming a market rate of 8%, 10%, and 12%. 5. Clark Creations is considering a proposal to sell an existing lathe and purchase a new computer-operated lathe. Information on the existing lathe and the computer-operated lathe follow: NE Existing lathe $100,000 40,000 20,000 Computer-operated lathe $300,000 Original Cost Carrying Value Fair Value now Salvage value in 4 years Annual cash operating costs Remaining useful life 60,000 50,000 200,000 4 years 4 years Assuming that the company's cost of capital is 10%, which is to be used in discounted cash flow analysis. Requirement: a) Compute the net present value of investing in the computer-operated lathe. b) Compute the profitability index of investing in the computer-operated lathe