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please answer all parts Real cptions and capital budgeting) You have come up with a great idea for a Tex-Mex-Thai fusion restaurant. Affer doing a

please answer all parts
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Real cptions and capital budgeting) You have come up with a great idea for a Tex-Mex-Thai fusion restaurant. Affer doing a financial analysis of this venture, you estimale that the in fial oudity wif be $5.8 million. You also estimate that there is a 50 percent chance that this new restaurant wil be well recelved and wil produce annual cash flows of $340,000 per year forever (a perpetuity), while there is a 50 percent chance of it producing a cash flow of only $180,000 per yoar focever (a parpetuity) if a isnt received well. a. What is the NPV of the restauant it the required rate of reburn you use so discount the project cash fows is 10 percent? b. What are the real eptons that this ansysis may be ignoring? c. Explain why the project may be worthwhie even though you have just estimated that its NPV is negative? a. Assume the tequired rale of retum you use to discount the project cash fows is 10\%: What is the NPV of the restaurant 7 things go wein? (Round to the nearest dolar)

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