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Murad is considering starting a small catering business. He would need to purchase a delivery Van and various equipment costing $125 000 to pop the

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Murad is considering starting a small catering business. He would need to purchase a delivery Van and various equipment costing $125 000 to pop the behet 000 working capital needs. Rent for the building used by the business will be $35.000 per year. In addition to the building rent, annual cash outflow for operating will $40,000 Murad's marketing studies indicate that the annual each intlow from the bumes will amount to $120.000 All of working capital would tell the end of you 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 con Murales do Use the following present value tables, to determine the appropriate descount factor) Present Value of S1, 1(1-1) Periods 8% 9% 10% 11% 12% 13% 1496 1596 16% 1796 4 0.735 0.708 0.683 0659 0.636 0.613 0392 0572 052 0530 Present Value of an Ansulty of Siin Arvas, 111-1(1+1)] 3 0.681 0.650 0.621 0.593 0.567 0.5430 5190,497 0.4760456 6 0.630 0.596 0.5640535 0.507 0.480 0,456 043210.4100390 7 0.5830.5470.513 0.482 0.45204250.400.0376 03350 333 Periods 896 99 10% 1196 1296 1396 1496 1594 169 4 3.3123.240 3.170 3.1023037297429141283579827837 5 3.9933.890 3.791 3.696 3.6053173.4331332324 3199 6 4.6234.48643554231 4111 5.998 889 278436853589 5:2063.033 4.8684.71243641423 4.288 4.160.0393.923 Required: Compute the net presett value of this investment 1 TIPOYO ALT+Ft (MSC

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