Jonathan Lark's lifelong dream is to own a restaurant. He owns a premium site for a restaurant across the street from the local university. Now he needs to decide what kind of restaurant to open Recently, Jonathan began to investigate one of the fastest-growing fast-food franchises in the country, Pepper Roni Pizza. A Pepper Roni Pizza franchise costs $62,400, an amount that is amortized over 15 years. As a franchisee, Jonathan would need to adhere to the company's building specifications. The building would cost an estimated $936,000 and would have a $104,000 salvage value at the end of its 15-year life. The restaurant equipment (fryers, steam tables, booths, counters) is sold as a package by the corporate office at a cost of $210,000, will have a salvage value of $20,800 at the end of its five-year life, and must be replaced every five years. Jonathan estimates the annual revenue from a Pepper Roni Pizza franchise at $1,976,000. Food costs typically run 36% of revenue. Annual operating expenses, not including depreciation, total $884,000. For financial reporting purposes, Jonathan will use straight- line depreciation and amortization. Based on past experience, he uses an 16% discount rate. Calculate the restaurants net present value over the franchise's 15-year ife. (For calculation purposes, se decimal places as displayed in the factor table provided and round final ) 130,140 Net present value LINK TO TEXT LINK TO TEXT LINK TO VIDEO LINK TO VIDEO Your answer is incorrect. Try again Use Excel or a similar spreadsheet application to calculate the restaurant's internal rate of return over the franchise's 15-verte. Round answer to 2 decimal places, eg. 15.256.) Internal rate of return 24.12 LINK TO TEXT LINK TO TEXT LINK TO VEDNO LINK TO VIDEO Your answer is incorrect. Try again. Calculate the restaurant's payback period. (Round answer to 2 decimal places, og 15.25.) Payback period Yes