2. NPV rule Suppose you consider launching a balloon ride business. Just after the Balloon Fiesta was over this year, a hot air balloon is up for sale, and you can purchase it today for $80,000. Once taken, the balloon is expected to bring $110,000 as benefits one year from now by providing rides in the next fiesta. The interest rate is 8% per year. (a) What is the NPV of this opportunity? According to the NPV rule, is it worth investing? (b) Suppose that you have no cash in hand. Instead, you try to finance the purchase by borrowing money from a bank with the promise to repay $110,000 in one year. What is the resulting cash flow from the opportunity and the bank loan combined? Present the table listing actions and cash flows today and year 1. (c) If you launch the business by taking this opportunity, how much would the company be worth? (Note that the company is worth nothing before this opportunity)