You have been observing the progressive gentrification of San Francisco with interest . realize that the time is ripe for you to start and run an aerobic exercise center . You find abandoned warehouse in Fisherman's Wharf which will meet your needs and rents \$48000/ year . You estimate that it will initially cost $50000 to renovate the place and Nautilius equipment for the center . ( There will be no salvage and the entire initial cos depreciable ) You have done a market survey which leads you to believe that you will 500 members each paying \$500/year You have also found 5 instructors you can hire $24000/year apieceYour tax rate if you start making profits will be 40\% and you cho to use straight line depreciation on your initial investment. If your discount rate is 15% expect to retire to the Bahamas in ten years, answer the following questions: Estimate the initial investment (CF0). (1 mark) b Estimate the operating free cash flows to the firm (FCFF ) on the project for the 10 years . (5 ma ) c . Calculate the NPV on this project. (2 marks ) d . Is this a good investment ? (1 mark )