1. (35 points) Miley Cyrus is once again the inspiration for a small business owner (oops, she did it again - wait...wrong female pop star). With the recent legalization of marijuana in Colorado, an aspiring entrepreneur (whose favorite song is "Wrecking Ball") is deciding whether he should open a storefront, Wrecking Bong, with the slogan "Come get Wrecked." He has found a potential location that would cost an initial $250,000 investment to purchase and update the property. He expects an initial return of $0.50 for every dollar invested during the first year of business. After that first year, business will grow quickly. He forecasts a growth of 30% the next year, followed by another 20% and finally one last year of 15% growth before things calm down. After this period of rapid growth, he expects a modest decline of 20% for 10 years. Assume a cost of capital of 12%. (a) (5 points) Draw the timeline for the years 0-6. (b) (5 points) Find the PV for years 0-4