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(Note: please make sure to show all the details and calculations to arrive at the final answer to earn full credits) Assuming that you have
(Note: please make sure to show all the details and calculations to arrive at the final answer to earn full credits) Assuming that you have $190,000 available to invest in each option. Investment Opportunity 1: Assuming you have some construction background and considering to purchase the used Cat 990 Wheel Loader for investment. If you purchase and rent it out, it will produce cash inflows of $32,500, $38,470, $40,805, and $41,268 a year for the next four years, respectively (assume that the Wheel Loader will last for 4 years and will no longer work after 4 years). The discount rate is 6% and the selling price is S190,000. Investment Opportunity 2: Assuming that you are interested in investing in 10 in quantity in annual corporate bonds at the selling price $1,900. The bonds have 4% coupon bond rate, a face value of $1,930 and mature in 15 years
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