Sonja Jensen is considering the purchase of a fast-food franchise. Sonja will be operating on a lot that is to be converted into a parking lot in six years, but that may be rented in the interim for $800 per month. The franchise and necessary equipment will have a total initial cost of $55,000 and a salvage value of $10.000 (in today's dollars) after six years. Sonja is told that the future annual general inflation rate will be 5%. The projected operating revenues and expenses (in actual dollars) other than rent and depreciation for the business represented in the table below. Assume that the initial investment will be depreciated under the five-year MACRS and that Sonja's tax rate will be 309%. Sonja can invest her money at a rate of at least 10% in other investment activities during this inflation-ridden period. Click the icon to view the projected operating revenues and expenses Click the icon to view the MACRS depreciation schedules. (a) Determine the cash flows associated with the investment over its life. Fill in the table below. (Round to the nearest dollar.) Period Net Cash Flow (Actual Dollars) (b) Compute the projected after-tax rate of return (real or inflation-free) for this investment opportunity and justify whether or not it is worth undertaking. The real (inflation-free) rate of return is 9%. (Round to two decimal places.) The MARR (inflation-free) is 96. (Round to two decimal places.) Is the investment a good one? Choose the correct answer below Yes O No : More Info End of Year Revenues Expenses $35,000 $16,000 38,000 21.000 R W N 55,000 23,000 60,000 32,000 70,000 33,000 30,00 33,000 2: More Info Class 10 20 Year n Depreciation 200% 200% 200% 200% 150% 150% rate 33.33 20.00 14.20 10.00 5.00 3.750 44.45 32.0 24.49 18.00 50 7.219 14.81 19.20 17.4 14.40 8.55 8.677 74 1.5 12.48 1.52 .70 8.177 151 8.93 9.22 .92 5.71 5.76 8.92 7 37 3.23 5.285 8.93 8.55 5.90 4.888 4 46 6.55 5.90 4.522 6.56 5.91 4.462 3.55 5.90 4.461 3.28 5.91 4.462 5.90 4.461 5.91 4.462 5.90 4.461 5.91 4.462 2.95 4.461 4.462 4.461 4.462 4.461 2.231 Year to switch from declining balance to straight line