Murad is considering starting a small catering business. He would need to purchase a delivery van and various equipment costing $62,500 to equip the business and another $30,000 for working capital needs. Rent for the building used by the business will be $17.500 per year. In addition to the building rent, annual cash outflow for operating costs will amount to $20,000. Murad's marketing studies indicate that the annual cash inflow from the business will amount to $60,000. All of working capital would be released at the end of 7 years Murad wants to operate the catering business for only seven years. He estimates that the equipment could be sold at that time for 5% of its original cost. Murad uses a 13% discount rate. Use the following present value tables, to determine the appropriate discount factor(s) 9% Present Value of $1, 1(1+r) Periods 8% 10% 11% 12% 13% 14% 15% 16% 17% 4 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0572 0.552 0534 Present Value of an Annuity of $1 in Arrears, 11[1-1(1+)n] 5 0.681 0.650 0.621 0.593 0.5670.543 0.519 0.497 0.476 0.456 6 0.630 | 0.596 0.564 0.535 0.507 0.480 0.456 0.4320 4100 390 7. 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.3540 333 Periods 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 4 3.312 3.240 3.170 3.102 3.0372.9742.9142.855 2.798 2.743 5 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.27A 3 199 6 4.623 4.4864.355 4.231 4.111 3.9983.889 3.784 3.685 3.589 7 5.206 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.0391 3922 Required: Compute the net present value of this investment