Anita Daye is investigating purchasing an ice cream franchise from Creamery, Inc., to sell various ice cream dishes under the Creamery, Inc. name. She has compiled the following information: 1) She can rent a small store for $5,800 per month. She expects this rental cost to increase at an approximate rate of 4% annually. 2) The original investment in equipment will be $352,000. She expects to have to replace some of this equipment at the end of the eighth year, and she estimates that the replacement cost will be $78,000. Also, the equipment that is being replaced can be sold "used," and she expects to be able to sell that equipment for approximately $14,000. 3) Anita estimates that sales would begin at $380,000 annually, and she expects sales to increase 4% per year for the first four years, then 2% per year thereafter. 4) Anita estimates that ingredients will cost 27% of sales. 5) Estimated fixed annual operating costs are $95,000 per year for salaries (which will increase at 2% per year), $6,200 per year for insurance (which will increase at 1% per year), and $36,000 per year for other costs (utilities, etc., which she predicts will increase at 5% per year). Required: A) Name and define the analytical techniques that should be used to perform an analysis of Anita's proposed franchise. B) Please perform the analyses named in (A) and recommend a course of action. Anita desires an annual rate of return of 22%, and wishes to use a 15 year timeframe for the analysis.