please use the example on photo 1 to correct qu 9

4u6 = your comp any couls Purchase equipment Fv for book Today Itwould incressa Profits by 150k/y Paidatend of each year for T5 yrs PV=(1+r)TFv, biscount nate cost of captal =5% Risk / inconirniance 2 * ln flation 3% (11,)1=1.11.12150,000=136,363 (11,291,3=1.211.1)2150,000=123,966=1.33 (11,4=1.46 (11,5=1.61(1.1)6=177(1.1)3150,0.0=112,781(11,4150,0.0=102,734 (11)5150,000=93,167 9. Suppose your company can purchase new equipment for $870,000. Your company's profits would increase by $236,000 per year for 5 years, paid at the end of each year. The equipment becomes worthless at the conclusion of the 5th year, no salvage value. You assume an inflation rate of 2%, the risk of this equipment not leading to this profit is 2%, and your cost of capital would be 4% to purchase this equipment. Should you purchase this equipment? Show your work. Carry answer to the nearest dollar. Hints: (1.08)2=1.17(1.08)3=1.26 (1.08)4=1.36 (1.08)5=1.47,5/9(1.08)6=1.59