Forms are provided in the Working Papers. Work this problem independently.

1. Create a schedule that shows the payment of an annuity over a five-year period. The initial investment is 25,000.00, the annual payment is $6,594.94, and the interest rate is 10%.
2. Calculate the present value of an annuity of 15 payments of $5,000.00 at an interest rate of 12%.

3. Daniel Supply Company is considering the purchase of equipment costing $35,000.00 having a seven-year useful life. Projected net cash flows from the investment are $8,000.00 annually. Determine the net present value of the investment, assuming a rate of return of 8%. Should the company purchase the equipment?