Question 3 5 Marks You are a director of capital acquisitions for Morningside Hotel Company. One of the projects you are deliberating is acquisition of Monroe Hospitality, a company that owns and operate a chain of bed-and-breakfast inns. Susan Sharp, Monroe's owner, is willing to sell her company to Morningside only if she is offered an all-cash purchase price of R5 million. Your project analysis team estimates that the purchase of Monroe Hospitality will generate the following after-tax marginal cash flow: MBA5903 JANUARY/FEBRUARY 2022 Year 1 Cash flow R 1 000 000 R 1 500 000 R2 000 000 2 3 4 R2 500 000 R 3 000 000 5 If you decide to go ahead with this acquisition, it will be funded with Morningside's standard mix of debt and equity, at the company's weighted average (after-tax) cost of capital of 15 percent. Morningside's tax rate is 30 percent. Should you recommend acquiring Monroe Hospitality to you CEO