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Murad is considering starting a small catering business. He would need to purchase a delivery van and various equipmen working capital needs. Rent for the building used by the business will be $35,000 per year. In addition to the buildi $40,000. Murad's marketing studies indicate that the annual cash inflow from the business will amount to $120,000. Murad wants to operate the catering business for only six years. He estimates that the equipment could be sold at that tim Use the following present value tables, to determine the appropriate discount factor(s): Present Value of an An Present Value of $1; 1 (1+r) Periods 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 4 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.5520.534 5 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 6 0.630 0.596 0.564 0.535 10.507 0.480 0.456 0.432 0.410 0.390 7 0.583 0.547 0.513 0.482 0.452 | 0.425 0.400 0.376 0.354 0.333 Periods 8% 9% 11% 12% 13% 14% 15% 16% 17% 4 3.312 3.240 3.170 3.102 3.037 | 2.974 2.914 2.855 2.798 2.743 5 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 6 4.623 86 4.355 4.231 4.111 3.998 3.889 3.784 3.6853.589 7 5.206 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 Required: Compute the net present value of this investment. 510 Por ALT+FN+F10 (Mac). 10% ! 1 TTT ss. He would need to purchase a delivery van and various equipment costing $125,000 to equip the business and another $60,000 for y the business will be $35,000 per year. In addition to the building rent, annual cash outflow for operating costs will amount to he annual cash inflow from the business will amount to $120,000. All of working capital would be released at the end of 6 years. six years. He estimates that the equipment could be sold at that time for 4% of its original cost. Murad uses a 16% discount rate. the appropriate discount factor(s): Present Value of an Annuity of $1 in Arrears: 11[1-1(1+r)n] 13% 14% 15% 16% 17% 0.613 0.592 0.572 0.552 0.534 0.543 0.519 0.497 0.476 0.456 0.480 0.456 0.432 0.410 0.390 0.425 0.400 0.376 0.354 0.333 13% 14% 15% 16% 17% | 2.974 | 2.914 | 2.855 2.798 2.743 5 3.517 3.433 3.3523.274 3.199 3.9983.889 3.784 3.685 3.589 4.423 4.288 4.160 4.039 3.922