Tom Thurlow wants to buy a boat but is short of cash. Two alternatives are available: Tom can accept $7,500 per year from his brother for partial ownership in the boat, or he can earn money by renting the boat to others. Rental income would be $10,000 per year. Under either alternative, the boat will last eight years. If Tom rents the boat out, he will have to pay $15,000 to overhaul the engine at the end of the fourth year.

assuming that the cost of capital is 12% and that only quantitative considerations are involved? (Round your answers to the nearest whole dollar).

how would you find the present value of cash inflows and the present value of cash outflows for each alternative (shared ownership with brother or renting out the boat)?