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, athan began to investigate one of the fastest-growing fast-food franchises in the country, Pepper Roni Pizza. A Pepper Roni Pizza franchise costs $98,700, an amount that is amortized over 15 years. As a franchisee, Jonathan wou need to adhere to the company's building specifications. The building would cost an estimated $1,480,500 and would have a $164,500 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 $658,000, will have a salvage value of $32,900 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 $3,125,500. Food costs typically run 36% of revenue. Annual operating expenses, not including depreciation, total $1,398,250. For financial reporting purposes, Jonathan will use straight-line depreciation and amortization. Based on past experience, he uses an 16% discount rate. Click here to view the factor table. Calculate the restaurant's net present value over the franchise's 15-year life. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to o decimal place, e.g. 58,971.) Net present value $ LINK TO TEXT LINK TO TEXT LINK TO VIDEO LINK TO VIDEO Use Excel or a similar spreadsheet application to calculate the restaurant's internal rate of return over the franchise's 15-year life. (Round answer to 2 decimal places, e.g. 15.25%.) Internal rate of return % LINK TO TEXT LINK TO TEXT LINK TO VIDEO LINK TO VIDEO Calculate the restaurant's payback period. (Round answer to 2 decimal places, e.g. 15.25.) LINK TO TEXT LINK TO TEXT LINK TO VIDEO LINK TO VIDEO Use Excel or a similar spreadsheet application to calculate the restaurant's internal rate of return over the franchise's 15-year life. (Round answer to 2 decimal places, e.g. 15.25%.) Internal te of return % LINK TO TEXT LINK TO TEXT LINK TO VIDEO LINK TO VIDEO Calculate the restaurant's payback period. (Round answer to 2 decimal places, e.g. 15.25.) Payback period years LINK TO TEXT LINK TO TEXT LINK TO VIDEO LINK TO VIDEO Should Jonathan open a Pepper Roni Pizza? Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO VIDEO LINK TO VIDEO Question Attempts: 0 of 15 used