Question 1. Financial evaluation (8 marks) You are investigating the feasibility of starting a new garden services business. You estimate that you will be able to maintain an average of 2 properties per day for a price of $300 per property. The business will operate 180 days per year, losing some days to wet weather and holidays. You will have to invest in a new gardening trailer, worth $20,000 plus a ride-on mower ($10,000) and other gardening tools (another $10,000). You can afford this from personal savings. For tax purposes, you will be able to linearly depreciate these assets over 5 years. You estimate that the running costs of a car to tow the trailer plus maintenance and repair of tools will abe around $20000 per year. Using a 5-year time horizon, nominal cash flow (not adjusted for inflation) and a 10% discount rate, calculate the Net Present Value of the business: (i) Applying before tax cash flows (4 marks) (ii) Considering After tax cash flows at a 25% corporate taxation rate. (4 marks)