Part 2 - Question 2:

Please I need a professional answer, not by handwriting.

-------------------------------------------------------------------------------

2) Fred's Widget Company has purchased $500,000 in equipment, which can be sold for a salvage value of $300,000 at any time. The best interest rate on alternative investments is 5%. What is the cost of using this machinery for one year? How would your answer be different if the machinery had not yet been purchased?