Revenues Expenses Taxes Net Income Royalties Subway Franchise ($ 000) 2020 333 174 37 122 15 2021 353 181 40 132 16 2022 374 188 43 143 17 The franchise has $100,000 of debt at an interest rate of 8% The franchise has equity of $50,000 at a cost of equity of 10% Assume after 10 years cash flows grow by 2.5%