Problem
To examine the implications of selecting various discount rates, reconsider the water filtration system example in the text but change the discount rate from 10 percent to 5 percent.
a. Find the present value of the system.
b. Now compare this present value with the one calculated under the assumption of a 10 percent rate. Explain the difference intuitively.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.