5:34 The old school is trying to decide whether they should purchase or lease a new high-speed photocopier and $750 each year to maintain the machine over the course of its six-year useful life. At the end of the sixth year, Old school expects to be able to lease the school the same copier for a payment of $750 at the beginning of the lease plus lease payments of $3,450 per year for four years. Lease payments include all maintenance. The dealer was unable to offer a lease longer than four years. Lease payments would be made at the end of the year. if the old school's discount rate is 8 percent, which alternative should it choose and why? 5.36. Rural Consolidated Fire Services (RCFS) is considering applying for a Federal Department of Energy (DOE) grant that would allow it to install solar panels on each of its four firehouses. The roofs on each of the firehouses are big enough to accommodate 30.000 square feet of panels. Panels cost $8 per square foot. In addition, RCFS will have to pay $8.000 per firehouse for batteries and other equipment costs and $10.000 per firehouse for installation. RCFS expects the solar panels on the four buildings to generate a total of $6.000 worth of electricity each month for the next 10 years. If RCFS puts panels on all four firehouses, the DOE will give RCFS $500.000 toward of cost of buying and installing the solar-power system. Federal stimulus money will be received at the start of the project. If RCFSs discount rate is 6 percent, should RCFS install the panels based solely on financial conversations? Support your answer with the appropriate TVM calculations. 5.37. The Town Pool is considering investing $3.200 today in a popcorn market. The annual cash profits from the machine will be $ 500 for each of the 10 years of its useful life. What is the IRR on the investment?