Last year, you and two friends from college purchased a food truck for $70,000 hoping to make

it big selling breakfast tacos. Your tacos were a big hit, and an investor made an offer to buy

your business (truck, name, and all equipment) for $100,000 today (2020). Over the next 5 years,

you project annual revenue to be $50,000 with operating costs of $10,000. Escalation of revenue

and operating costs are expected to be a washout. The MACRS depreciation class of the truck is

5-year property. Perform a DCFROR analysis assuming that the food truck cost is both a) sunk

and b) not sunk. The tax rate is 21%, and the after-tax hurdle rate is 15%. Should you and your

friends sell or develop your business?