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$12.$ You are considering starting a bookstore. You own a real estate in Washington and you know you could sell the land today for $$100,000($you bought it $5$ years ago for $$$0,000).$ To start the business, you need to invest $$160,000$ to build the store and you plan to depreciate it straight line to zero over $4-$year period. You expect that the initial working capital is $$6,000$ and the working capital will be recovered in the last year. US Bank offered to lend you the $$160,000$ as a $4-$year loan at an interest rate of $5\%.$ Forecasted revenues for each year are $$120,000$ while costs will be $30\%$ of the revenues. The tax rate for business In Washington County is $21\%.$ You estimate your cost of capital to be $12\%.$ Should you build your bookstore? Why or why not? There is a table attached to assist you in this decision. $(14$ points$)$

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