Question #7 You are the owner of a small business. An opportunity to expand into a new market niche arose. It requires an initial equipment investment of $300,000. You will finance the entire amount with a 5-year loan at 3.2% interest rate (annual payments). Depreciation will follow MACRS-3 Sales projections look very promising as shown below: $200,000 in first year's projected sales Sales growth is expected to increase by 40% over the previous year's sales with a high level of confidence) COGS is expected to remain at 25% of each years' sales Operating Expenses are $40,000 the first year and increase by 20% over the previous year's Operating Expense. Business ordinary tax rate is 29% A. Develop the following for years 1 thru 5: 1. Loan amortization table (2 points) 2. Depreciation table (2 points) 3. Income Statement (2 points) 4. Cash Flow Statement (2 points) B. Based on the information provided in the above statements, would you pursue the opportunity? In -50 words, explain why or why not. 2 points) Note: your assessment must be rational & reasonable and your explanation should be supported by facts within the statements to earn full credit) Note: In your Income Statement if Net Earnings (AKA EBT) is negative, no taxis charged/assessed