Mr Rossi is considering the opportunity to build and manage a hotel at the seaside in South of Italy. Consider the following information: Initial investment of 800.000 , depreciable in 8 years with constant rates; Building expenses of 35.000 , depreciable in 3 years with constant rates, Recruitment of 2 concierges with a total cost of 42.000 per year Revenues: from year 1 to 8:350.000 per year License tax of 30,000 per year General and administrative costs of 100.000 pery Year The whole initiative is financed with Rossis owned capital Supposing a cost of capital K = 8% (=discount rate) and tax rate t = 40%, would this be a good investment for Rossi (use the NPV method to solve the exercise and consider 8 years as economic life of the initiative)2