You are in the pizza business and want to buy a new pizza making machine. The machine costs $14093 today. At the end of each year you own the machine it will give you returns of $3037after paying for maintenance and repairs.

After you have owned the machine for 6 years you expect to sell it for scrap for $1,000. (You scrap it at the same time you get the last $3037 return.) What is the present value of the RETURNS at

a) 3%? b) 7%? c) 11%?

What's the present value of the COST of the machine if the interest rate is: a) 3%? b) 7%? c) 11%?