Question 1 Management is considering buying a pump that costs $20,000 and could save them $7,500 per year over the next 3 years in maintenance costs. If our desired rate of return on any investment is 14% per annum, should we make the investment? Present value of $1 Period 10% 12% 14% 1 0.909 0.893 0.877 2345 0.826 0.797 0.769 3 0.751 0.712 0.675 0.683 0.636 0.592 0.621 0.567 0.519 (10 marks)