Declan macmanus is considering a capital budgeting project. this project willinitially require a $25,000 investment in equipment and a $3,000 working capitalinvestment. the useful life of this project is 5 years with an expected salvage value ofzero on the equipment. the working capital will be released at the end of the 5 years. the new system is expected to generate net cash inflows of $9,000 per year in each of the5 years. also a repair of the equipment will be required at the end of year 3, costing$5,000. macmanus’ discount rate is 14%. the net present value of this project is closestto (ignoring taxes): a)$(3,088)b)$1,079c)$2,522d)$4,454e )$3,375

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Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan