Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $500. However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $3,700 to build. Your friend wants to know if he should invest the money to construct it. If the interest rate is 12.5% per year, what should your friend do? What is your advice if the machine takes one year to build?