a A group of farmers in East Texas wants to open a farm-to-table restaurant in the Houston area to help them capture a bigger portion of the food dollar. It will cost $240,000 to purchase the venue, equipment, and furnishings. They plan to pay 20% of the initial cost and take out a 10- year loan with 6% interest to cover the rest. Real annual operating receipts are expected to be $110,000 and real annual operating expenses are expected to be $82,000. The farmers expect the real terminal value of the restaurant to be $220,000 after nine years. The IRS will allow them to depreciate the restaurant and equipment using straight-line over 30 years. They require a 9% pre-tax return to capital and they have a 4% risk premium. The marginal tax rate is expected to stay at 22% and inflation at 2%. Calculate the nominal pre-tax net return in year 4? a $28,000 b.$30,308 d.$23,460 c.$23,640 Calculate the yearly loan payment? a $11,520 b.$28,228 c.$28,614 d. $26,087 What are the tax savings from interest in year 1? a $11.520 b.$0 c.$2.534 d.$5,739 Calculate the nominal pre-tax net return in year 4? a $28,000 b.$30,308 c.$23,640 d.$23,460 Calculate the yearly loan payment? a.$11.520 b.$28,228 d.$26,087 c.$28,614 What are the tax savings from interest in year 12 a $11,520 b.$0 d.$5,739 c.$2,534 Calculate the principal payment in year 1? a $26,087 b.$13,254 c.$13,452 d.$14,567 Calculate the Net Cash Flow after-debt in year 1? a $21,834 b.$485 Calculate the principal payment in year 1? a.$26,087 b.$13,254 c.$13,452 d.$14,567 Calculate the Net Cash Flow after-debt in year 1? a $21,834 b.$485 c.-$48,000 d.-$240,000 Calculate the Net Present Value after debt flows? a $8,102 b.$42,573 c.$42,753 d. $50,675