You have been offered the opportunity to purchase a franchise of sunshine Juice Stores. You will have to pay $\$ 155.625$ for the initial investment in the store and its equipment, plus $\$ 30.000)$ per year for the lease payments and the franchise fee the franchise contract obligates you for 10 years. Operating costs for cach tear will be $\$ 125,000$, and the expected revenue is $\$ 180,000$ ) a year. Your hurdle rate is 10 per cent. Ignore income taxes.

1. Does this investment yield a satisfactory rate of return?

2. What qualitative factors might be considered?