Problem 2....30 points Pierced Ear, Inc.is contemplating the purchase of an existing retail outlet in Ohio. The seller wishes to obtain $100,000 for the store, for all his merchandise and equipment, but you have countered-offered to consider the acquisition only if he agrees to take $65,000 now, $25,000 next year, and $10,000 in the following year. You have established that the appropriate Risk-Adjusted Required Rate of Return for this project is 16%. The anticipated after-tax cash flows for the next 5 years are listed below. Additionally, you intend to spend $50,000, immediately at acquisition, to remodel the store. There is no assurance that the landlord's lease would be renewed at the end of the fifth year at which point they would vacate the premises. After-Tax End of Year Cash Flow 1 $35,000 2 45,000 3 60,000 4 65,000+ 75,000 Required... a) Should Pierced Ear, Inc. acquire the store? (support your conclusion using NPV analysis)