BTN 14-8 Mark and Holly Melton are entrepreneurs and owners of Melton Franchise Systems. Assume that Meltons' franchise program currently has $250,000 in equity; and they are considering a $100,000 expansion to meet increased demand. The $100,000 expansion would yield $16,000 in addi- tional annual income before interest expense. Assume that Meltons' franchise program currently earns $40,000 annual income before interest expense of $10,000, yielding a return on equity of 12% ($30,000/$250,000). To fund the expansion, the Meltons are considering the issuance of a 10-year, $100,000 note with annual interest payments (the principal due at the end of 10 years). Required 1. Using return on equity as the decision criterion, show computations to support or reject Meltons' expansion if interest on the $100,000 note is (a) 10%, (b) 15%, (c) 16%, (d) 17%, and (c) 20%. 2. What general rule do the results in part 1 illustrate