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q1/ The owner is advertising a machine for sale. An investor estimates that the machine could be rented out for $600 per month. Taxes and

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q1/ The owner is advertising a machine for sale. An investor estimates that the machine could be rented out for $600 per month. Taxes and minor maintenance expenses are estimated at $1200 per year and will be paid by the investor. The investor thinks he could sell the machine for $85 000 after 5 years .a- What is the largest amount that the investor can offer for the machine if his MARR is 12%, compounded monthly? Justify your answer. b- Reevaluate the investor offer if .the average inflation rate is 5% * 72274 O 62274 0 72254 O 82274 85000 O

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