Jio 91% 10:51 PM Liz Corp Fin 16/10/20, 10:51 PM All Media Problem 7. You are considering leaving your current job to set up a restaurant. Your current (after tax) salary is $70,000 and, if you do not go ahead with the restaurant project, you will work 4 more years. In that case, you will receive your salary at 1,2,3,4. If you go ahead with the restaurant project, you plan to be in business forever (ie, either you expect to live forever or you expect the restaurant will be in your family for many generations). You have come up with the following information: The locale for the restaurant will cost $500,000 today (to) and will be fully depreciated in a straight line over 5 years according to the IRS rules. The main cost will be the chef's salary. Her salary will be $100,000 annually (paidat the end of each year). The revenues of the restaurant are expected to be $250,000 per year and other costs (not including depreciation or the chef's salary) are expected to be $50,000 annually. Revenues and costs are paid at the end of each year. The tax rate is 35% and the discount rate is 10% (both constant over time). Compute the cash flows for the first five years (-0,1,2,3,4,5). What is the NPV of your restaurant