*You are evaluating a purchase using the net present value method. Using an interest rate of 3%, find the NPV for this asset. Based on this, should you buy the asset or not? Justify your answer.

*You have another possible purchase with an NPV of $5,000. Should you invest in this asset, or the asset in the question above? Justify your answer.

PROBLEM:
Which asset?
Justification

0	(112,000)
1	26,000
2	30,000
3	34,000
4	38,000