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You are trying to determine whether you should purchase a new tractor for $375,000. The tractor has a 5-year useful life and is expected to

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You are trying to determine whether you should purchase a new tractor for $375,000. The tractor has a 5-year useful life and is expected to generate the following annual cash inflows over that period. Year 1: $75,000 Year 2: $ 90,000 Year 3: $105,000 Year 4: $120,000 Year 5: $135,000 Assume that you will receive the cash flows at the end of each year and that your required rate of return on the investment is 15%. Should you purchase the tractor and why? Yes, because the PV of the cash inflows is $338, 038.77. Yes, because the PV of the cash inflows is $347, 821.38. No, because the PV of the cash inflows is $338, 038.77. Yes, because the PV of cash flows is $525,000

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