P7.6 (LO 2, 3, 4), AN Kendall has been working with a small travel agency for the past few years to learn the business and to better understand what costs are necessary to run it. Now, having been in the business world for a few years, she's ready to start her own travel agency, specializing in "off the grid" locations. She knows there will be both overhead costs and labor costs, since she intends to hire one assistant. The following chart outlines her estimates thus far. After assistant and overhead costs, but does not include a salary for Kendall. As a new business owner, Kendall only expects to earn a 5% rate of return. She conducted an initial NPV anlaysis for an 8-year interval, recognizing that she'll make some significant adjustments after that point. Her initial analysis revealed a positive NPV. Required a. Rerun the NPV analysis for Kendall. Did she correctly determine a positive NPV related to her investment for this 8-year period? State the NPV amount. b. Since Kendall's primary goal is not to make an exorbitant profit, how low could her annual net operating cash flows be and still generate a 5% return (i.e., a zero NPV)? State this annual amount in before-tax dollars. If she expects to provide services to about 50 customers, how much would she need to profit per customer before-tax? c. After presenting this more thorough analysis to her banker, she was reminded that these estimates. (from parts (a) and (b)) do not provide her much room (if any) for a salary to herself. That could be a problem! If Kendall believes she needs $20,000 per year to get by, rerun the present value analysis to determine how much total annual operating cash flow she will need to cover all the previously estimated expenses, plus her own salary, and still make a 5% return. What does this equate to on a per-customer level, before-tax? Eraluate multiple capital budyeting metries for different projects