Jon Snow is planning on opening a fight club for youths in Manhattan. The land will cost Jon $250,000, and the cost to build the arena on the land will be another $800,000. He plans on depreciating the cost of the arena over an 8 year period, using straight line depreciation and zero residual. Jon believes he will then be able to sell the land for $400,000 at the end of the 10 years, but will not recover any of the cost for the area. Jon expects annual revenues of $350,000 and operating costs (insurance, repairs, etc.) of $210,000. Annual Contribution Margin Annual Taxes on CM Annual Tax Shield Net cash flow, prior to disposal PV of disposal Required: Assuming a tax rate of 30-percent and an interest rate of six-percent, determine if this is a good investment for Jon Snow by determining the present value of the investment. Be sure to show your work for credit