Carlos owns and operates a restaurant. To help expand his business, Carlos is considering the feasibility of offering a wedding catering service. To open this service, Carlos needs a van to deliver his food to the various weddings. After doing some research and price-checking, he has found a suitable new van online costing $45,000. Carlos will make a 25% down payment and finance the rest of the van with an amortized loan over 5 years at a 6.5% interest rate. Carlos predicts that by catering approximately 8 weddings a year at about $5,000 per wedding, he will increase his operating receipts by $40,000 per year. However, his operating expenses such as food, fuel, labor and insurance will increase by approximately $25,000 per year. Carlos assumed a straight-line depreciation over 8 years and the life of the investment is 5 years. The terminal value of the van is $30,000 after the 5 years, and Carlos requires a pretax 9% rate of return to capital. The marginal tax rate over the next 7 years is 23%. (0) What is the appropriate discount rate to calculate the NPV in this problem? a.6.5% b.6.93% enter response here (II) What is the initial cost for the service? a. $45,000 b. $,37,500 c. $38,000 d.$33,750 enter response here (iii) What is the yearly allowable depreciation using the straight-line method? a.$7,000 *b.$,5,625 c.$6,500 d.$6,250 enter response here (iv) What are the yearly after-tax net returns? a $12,000 b.$15,000 c.$9,240 d.$11,550 enter response here (v) What is the after-tax terminal value? a.$26,981.25 b.$30,000 c.$27,412.50 d. $27,500.50 enter response here (vi) What is the NPV