Murad is considering starting a small catering business. He would need to purchase a delivery van and various equipment conting $125,000 to equip the business and another $60,000 for working capital needs. Rent for the building used by the business will be $35,000 per year. In addition to the building rent, animal cash outflow for operating costs will amount to $40,000. Murad's marketing studies indicate that the annual cash inflow from the business will amount to S120,000. All of working capital would be released at the end of 6 years. Murad wants to operate the catering business for only six years. He estimates that the equipment could be sold at that time for of its original cont. Murad uses a 16% discount rate Use the following present value tables, to determine the appropriate discount factor(s); Present Value of $1:1(1+0) Periods 8% 9% 1096 11% 12% 13% 1496 15% 16% 179 4 0.735 0.708 0,683 0659 0.636 0.613 0.592 05720552 0534 Present Value of an Annuity of $1 in Arrears:13[1-1 (1-1)) 3 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.49704760.456 6 0.6300 3960364 0.335 0.507 0.480 0.456 0.432 034100390 0.5830.547 0.313 0.4820:4520425024000376 03540333 Periods 896 10% 11% 12% 13% 149 1356 169 175 3.3123.2403.1703.102 3.0372974291428552.798 2.743 5 3.993 3.8903.791 3696 3.6053517 3:33335232703199 4.623 4.4864.35542314.1113.9983.8893.784 3.6833389 7 5.2065.033 4.868 4.7124.564 4.423428841604039 3922 Required: Compute the net present value of this investment 7 996 4 6