4. You are going to start a business renting RV's out of Duncan. You will need to purchase RV's at a cost of $1,500,000. You plan to keep them for 3 years and then sell them for an average of 60% of their cost. The RV's are expected to generate $750,000 per year in revenue. Annual costs are expected to be $350,000 per year there will be a $50,000 temporary Increase in working capital. The company has a 30% tax bracket and their cost of capital is 15%. Should they purchase the RV's? The RV's are in a 20% CCA class