A) Compute the after tax salvage value for your equipment.

B) Identify annual taxes for the project.

C) Identify the annual cash flows from working capital (years 1-5).

D) Compute the Net Present Value for this project.

E) Compute a summary statistic of the average rate of return for this investment opportunity.

Please show your work for all these steps so I can understand.

Evaluating a new business opportunity You learn about a unique business opportunity that could be your full time job and keep you in the Williamsburg area - becoming a restaurant franchise owner in Tribe Square. Under the proposal, you would pay $40,000 for a business plan (due now), $200,000 for a franchise fee (half due now and half due in one year), and $50,000 for equipment (due now). None of these costs are tax deductible. The business plan is very helpful and lays out a detailed four year proposal. The business would generate $180,000 in revenues in each year starting in one year. Your annual operating costs are expected to be 50% of your sales. You need $25,000 in working capital immediately, and you expect to recover $20,000 of it at the end of year 4. Your equipment can be depreciated straight line to its salvage value of $30,000 over 4 years. The relevant corporate tax rate is 25%. Your required return is 4%. Evaluating a new business opportunity You learn about a unique business opportunity that could be your full time job and keep you in the Williamsburg area - becoming a restaurant franchise owner in Tribe Square. Under the proposal, you would pay $40,000 for a business plan (due now), $200,000 for a franchise fee (half due now and half due in one year), and $50,000 for equipment (due now). None of these costs are tax deductible. The business plan is very helpful and lays out a detailed four year proposal. The business would generate $180,000 in revenues in each year starting in one year. Your annual operating costs are expected to be 50% of your sales. You need $25,000 in working capital immediately, and you expect to recover $20,000 of it at the end of year 4. Your equipment can be depreciated straight line to its salvage value of $30,000 over 4 years. The relevant corporate tax rate is 25%. Your required return is 4%