1. Your business is considering investing in a machine that will cost $40,000 today, will last one year (with no resale value) and will provide $42,000 in revenues at the end of the year.

a)At what interest rate would you be indifferent between making the investment or not?

b)For what interest rates would you definitely make the investment?

c)How would your answers to parts a) and b) change if you could sell the machine at the end of the year for $3,000?