Mary is starting a food truck business. The food truck will be purchased for $98,000 Other equipment required (POS system, etc.) $14,000 Working capital required at start-up (for inventory, etc.) and will be released at the end of year 7 (non taxable) $20,000 The release of working capital is non- taxable The food truck and other equipment will be depreciated for 7 years straight line - no salvage value 7 Years Annual sales are estimated to be $160,000 per year Cost of goods sold % is 30% of sales The food truck will require additional repairs in year 5 of $22,000 Labor cost per year will be $70,000 per year Other monthly operating costs are $600 per month Her borrowing rate (cost of capital ) is 10%