You are thinking of buying a tractor for 70,000. You estimate you could generate annually $25,000 a year cash flow (end of year). However, in the first year you expect the cash flow to equal $0. The first

$25,000 of cash flow will start at the end of the second year. The estimated life of the tractor is 8 years with no salvage value. You would like an annual return of 12%. Should you buy the tractor?

(Please fill out chart) :)

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