Your neighbour wants to start a horse-boarding operation. It will cost $120,000 to build the barn, fences, and other facilities. She wants to operate this enterprise for 15 years, at which point she will sell the remaining assets for $50,000. She expects to have an average occupancy of 14 horses every month. a. How much gross margin (R f RC ) per horse does she need to earn each month to earn a 1% annual return? (END) N=15N=180 I=10/12=8333% PV=12000 PMT=1084.46 FV=50000 ENT P f horse RAVC=75.32 b. Your budget shows that you can earn an annual gross margin of $20,000/ year from this enterprise. You want to earn a 10% annual return. Calculate the Net Present Value (NPV) of this investment. Your neighbour wants to start a horse-boarding operation. It will cost $120,000 to build the barn, fences, and other facilities. She wants to operate this enterprise for 15 years, at which point she will sell the remaining assets for $50,000. She expects to have an average occupancy of 14 horses every month. a. How much gross margin (R f RC ) per horse does she need to earn each month to earn a 1% annual return? (END) N=15N=180 I=10/12=8333% PV=12000 PMT=1084.46 FV=50000 ENT P f horse RAVC=75.32 b. Your budget shows that you can earn an annual gross margin of $20,000/ year from this enterprise. You want to earn a 10% annual return. Calculate the Net Present Value (NPV) of this investment