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 $35,000 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) 10% Present Value of an Annuity of $1 in Artears, 11[1-1(1+r)n] Present Value of $1, 1(1+r) Periods 8% 9% 11% 12 13% 14% 15% 16% 17% 4 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.5520.534 5 0.681 0.650 0.621 0 593 0.567 0.543 0.519 0.497 0.476 0.456 6 0.630 0.5960 564 | 0535 0.507 0,4800 456 04320 4100.390 7 0.583 0.5470530 4820 4520 425 0.400 0.376 0.354 0.333 Periods 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 4 3.312 3.240 3170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 5 3.993 3.890 3 791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 6 4.623 4.4864.355 4 231 4 111 3.998 3.889 3.784 3.685 3.589 7 5.206 5.0334 868 4.712 4 564 4.423 4.288 4.160 4.039 3922 Required: Compute the net present value of this investment For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)