using excel: Discounted Cash Flow Analysis Fred, who retired early at 58 from a multi-national, is considering buying a small business. He is evaluating buying a wine store. The wine store that he is considering will cost him upfront $360,000, but he will get a business that is generating a positive cash flow from day 1. After shadowing the current owner for a month, Fred collected the following information. The business is currently generating a positive net cash flow of $30,000 per year (assume all cash flows occur at the end of each year). By keeping slightly longer hours and keeping more inventory, Fred can increase that annual cash flow by 5% every year, starting from the very first year that he operates the business. Fred decided that he will buy the business only if he can get at least a 10% annual rate of return on his investment. Fred plans to sell the business after 7 years and retire at 65. Based on his growth plan, a business consultant estimates that Fred will be able to sell the business for $500,000 at the end of 7 years. Drawing a time line and placing the cashflows on the timeline may help your thinking. Carry out an appropriate discounted cash flow (DCF) analysis. Based on your DCF analysis, do you recommend that Fred buy this business? Give your reasons. The 5% annual growth is only an estimate. Test the sensitivity of your conclusions if the growth rate is 3%, 4%, 5%,6%, and 7%