1. Rhonda also has the option of purchasing a new espresso maker that will allow her to expand her offerings at one location. She has the savings to purchase the equipment, but would lose the 4.5% annual interest that the savings generates. She expects the espresso machine to generate profits of $3,000 each year over the next 5 years. After five years she could sell the machine for $4,000. What is the present value of the machine to her?