You have deternined in your nind that you wold like to have a business of your oun, although your father runs a fanlly restaurant in your local city. You have therefore, decided to have a eediun slae snack and cocktalls bur which will accomodate the crulse ship passengers who visit your clty. You plan to keep the business for five years and go off to do your Naster's Degree in the ux. Though you will be occupyine the establishneat froe your crandnother for free, you have decided that you need to make sone inprovenents to the property which w11l cost you \$1,5ee,eee. Additionally, you will spend \$275, eee in bar stools, tables and decorations. If this space had been leased out, it would have fetched a lease rental of 575 ,eee per year. You will depreciate the assets over 7 years asine nacas. Vou have determined that you woeld need an average cash balance of $15, e0e and Inventory of $20,60 while Accounts payable should average $13, ebe. Vou plan to borrow the money fron a local bank and pay interest at a rate of 15 percent. To increase your chances of success at the business you plan to have your cousin Johnathan to conduct a market survey which will cost you $160, aee. Vour new venture will decrease the revenue your fanily business will earn by $15, eee per year and you have agreed to allow your father to take this anount froe yoor allewance as a shareholder of the fanily restaurant. Revenues are profected to be sseo, ebe the first year and is expected to increase by 20% the second year, 158 the third year and to continue to increase at lex thereafter. Fixed annal operating costs are expected to be salaries of $110, 006 , vililties $75,000, food and Liquor License is 15x of gross revences and caxes are 40x of net revenues. 1 Recsired: A. Calculate the initial outlay and depreciable value of the profect. B. Calculate the annual after-tax operating cash flow for Years 15. C. Determine the terminal year (in year s) after-tax non-oberatins cash flow. 0 . What is the project NPv? E. What is the estinated Internal Rate of Return (INa) of the project? Should the project be accepted based on the tor criterion? Why