Murad is considering starting a small catering business. He would need to purchase a delivery van and various equipment costing $125,000 to equip the business and another $60,000 for working capital needs. Rent for the building used by the business will be S35,000 per year. In addition to the building rent, annual 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 $120,000. 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 4% of its original cost. Murad uses a 16% discount rate. Use the following present value tables, to determine the appropriate discount factor(s):

Tamaining Timetheur 28 minutes. 05 seconds to completion Status Question 11 of 15 A Moving to answer question will win rem points Question 11 Murd is considering starting a small coming but He would need to purchase a delivery and variouquet coton 5123,000 to equip the bond the $60,000 for working capital needs Rent for the building used by the bus will be $35.000 per yea In addition to the building rental cash outflow for operating couts will meet to $40,000 Murs marketing aus dicate that the cash flow from the business will to $120,000. All of working capital would be released at the end of 6 years Mund to operate the catering business for only years. He estimated that the equipment could be sold out that time for of the original com Murad uses a 16% discount rate Uut the following prevaluable to determine the appropriate decount factors) Present Value of 1 (1) Periods 4. 104.11% 12% 13% 1494 1996 164179 4 0.0000005921003520330 Pretest Value of an Anis Arras TIC 0610650091656700300100097 076 0256 Periods 996 104. 1196 12 13 149 199 1645 1746 6 100003357050100OX03200100 311200110101010 2755279 OSSB0505045220350 400036 035003 200916533199 6 2. W 15 30 2009 Required Ce the per of this For the top ALT PALTO B1 Para A 2 1. > xx, The 1 ** 2 BAH