You are considering opening a gas station at a nice neighborhood. Suppose the following assumptions are true:

1. Inital investment cost = $625,000

2. Initial increase in net working capital = $20,000

3. Annual sales starting from year 1 = $175,000

4. Annual maintenance expense starting from year 1 = $45,000

5. Straight line depriciation to zero with a useful life of 25 years

6. Plan to run the gas station for 5 years

7. 70% of net working capital retrieved at end of year 5

8. Can sell the gas station for $380,000 after 5 years

9. Tax rate =21%

10. Cost of Capital = 15%

SHOULD YOU OPEN THE GAS STATION? WHY OR WHY NOT?