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Question 5 : Investment over time? ( show all your work. Points will be deducted for no work ) ( 2 0 points ) ,

Question 5: Investment over time? (show all your work. Points will be deducted for no work)(20 points), Show your work
A rental company is looking to purchase equipment for a marginal resource cost of $60000. The company will earn a revenue of $4500 per year for 5 years. At year 5, the company will also earn a salvage value of the equipment of $11000. The interest on the borrowing is 7%
a. Fill in the table below
Year
Future Value
Present Value
Discount Factor (percentage)
1
2
3
4
5
Should this firm invest, show why or why not?
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