Problem 10.4. The table below lists the dollar amounts of Leisure Lawn's investment in mowers, which cost $3,000 per mower. Mowers generate a flow of returns, and the present value (PV) of those returns is listed in the third column. For instance, investing in three mowers generates $9,900 in present value terms. interest rate (%) Mowers Investment PV APV MROR 17.5 (units) ($ ) ( $ ) ($ ) (%) 15.0 AWNHC 0 0 12.5 3,000 3,450 10 6,000 6,750 7.5 9,000 9,900 12,000 12,900 5.0 2.5 5 Investment (a) PV refers to the total investment. Compare present values across rows to calculate the marginal return (as a present value) APV. Enter the results in the fourth column. (b) Compute the marginal rate of return (MROR) by dividing the marginal return by the marginal invest- ment cost. Express the marginal rate of return as a percent; enter the result in the MROR column. (c) In the figure, plot the four pairs of investment amounts (column 2) and marginal rates of return (column 5). Since the marginal rate of return is over a range of investments (e.g., from 2 to 3), plot the midpoint of the range (e.g., 2.5) as the investment on the horizontal axis. Connect the points to draw the marginal- rate-of-return curve at Leisure Lawn. 2 Economics 200 Exercise 10: Wages and the Financial Market Fall 2020 (d) Imagine that Leisure Lawn can invest in a fraction of a mover. If the interest rate is 7.5 percent, Leisure invests in mowers