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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 onginal cost Murad uses a 13% discount rate. Use the following present value tables, to determine the appropriate discount factor(s) Present Value of an Annuity of $1 in Arrears, i r[1-1(1+r)n] Present Value of SI ICO Periods 82 14% 15% 16% 17% 0.35 0.708 0.683 0.659 0.636 0.61 0.592 0.572 0.552 0.534 0 680 6500 621 0 593 0.567 0 543 0.519 0.4970 476 0.4561 0630 0.5960 564 0.535 0.507 0.4800 1560 432 02410 0.390 0.58305470.313 0.482 0.452 0.125 0.400 0.376 0.354 0.333 Periods 1300 14% 150 16% 17% 4 2312320103 102 3037 2.9742.914 2.85521798 2.743 993.890 791 3.696 33 605 3 517 3.433 3.352 3.274 3.199 6348655431111 3.998 $ 889 3.784 3.685 3.589 2 20603386812 7564 +423 +288 4.160 4,039 3.922 Required: Compute the net present value of this investment For the toolbar press ALT=F10 PG or ALTEN-FIC Mac