Question: 1. What is the net present value of $4,285 for each year of 2 years with a discount factor of 0.9009 in Year 1 and 0.8166 in Year 2?
2. Assume an item of equipment is purchased at a cost of $22,800 to be paid for over 5 years, requiring a payment on principal of 20% per year at an annual interest rate of 12%. Complete a repayment schedule for each of the 5 years.