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Question 1 Valentina's Pizzas Corporation is considering the purchase of a new restaurant for $8 million. The forecasted net cash flows (net of the costs
Question 1 Valentina's Pizzas Corporation is considering the purchase of a new restaurant for $8 million. The forecasted net cash flows (net of the costs associated with running the restaurant) are $3 million a year for the next 15 years. A major refurbishment costing $2 million will be required after both the fifth and tenth years. After 15 years, the restaurant will be closed and the restaurant's venue is expected to be sold for $16 million. If the discount rate is 8%, what is this investment's NPV? Show your calculations. Based on your answer, do you think that this is a worthwhile investment? Explain why
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