Q2)You own a producing oil well.If you do nothing, 5000 barrels of oil will "ooze" out of the ground in two years.Experts predict the oil can be sold for $100.80/barrel, two years from now.However, if the same 5000 barrels can be extracted in one year, by purchasing an oil pump today for $25,000.00, experts predict it can be sold for $90.00/barrel.Assume, after either scenario, nothing will be left and the pump will have no salvage value.

Should you buy the pump?Why or Why Not?