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Celina is considering opening a mezcal and tequila bar in Laredo atter the coronavirus pandemic subsides. She knows that about $2 3 milion is collected

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Celina is considering opening a mezcal and tequila bar in Laredo atter the coronavirus pandemic subsides. She knows that about $2 3 milion is collected in mixed beverage alcohol taxes per year in Webb county (at a rate of 6.7% of the gross sale), and she believes her bar could get about 11% of the liquor sales in the county Her variable costs are likely to be 33% of her sales She plans to hire 2 full-time bartenders at $16/hour (assumo 2000 working hours per year), and a bar manager with a salary of $75,000/year plus 7% of revenue. Finally, she expects $50,000/year in miscellaneous expenses Celina needs $200,000 to buy the land in the location she wants, and 210,000 to build the bar and purchase equipment furniture, etc. She will use straight-line depteciation over a 15-year period She faces a tax rate of 23% She will need to hold an additional $25,000 in not working capital from the start of the project, which will be freed at the end Assume the bar wil close after 15 years In order to finance the new store, she will borrow $255.000 from a local bank, which will be paid off over fifteen years with equal monthly payments of $2,300.00 The rest of her initial capital requirements will come from her savings. She estimates that her equity will be 3 25 times as risky as investing in publicly traded stocks which have an expected return of 1055%The risk free rate is assumed to be 2 15% Enter your answers below numbers should be rounded to two (2) decimal places 1) The operating cash flow (in thousands of dollars) for the project. 2) The discount rate you used 3) The value of the project in thousands of dollars) 4) Yes or 'No depending on whether the project is worth pursuing

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