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 $60,900, 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 $913,500 and would have a $101,500 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 $180,000, will have a salvage value of $20,300 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 $1.928,500. Food costs typically run 36% of revenue. Annual operating expenses, not including depreciation total $862,750. For financial reporting purposes. Jonathan will use straight- line depreciation and amortization. Based on past experience, he uses an 16% discount rate. 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 decimal place, e.g. 58,971.) Net present value $ 817748 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 %