Here is the data you and Daniele have managed to collect so far. Daniele and Angela are going to own the coffee shop for 4 years and then convert it into a clothing store (they think it would be more entertaining than to do the same thing for more than 4 years). The equipment (coffee machine etc.) would cost $90,000, will be good for 4 years, and after 4 years will need to be demolished and replaced since will no longer produce high-quality coffee. Some time will be required to attract customers and gain market share among Kitsilano coffee shops. Sales during the first year are planned to be 110 cups of coffee per day at average with 25% increase each year for 2nd and 3rd years and 10% increase for 4th and 5th year. Due to inflation, the prices will increase 3%/year. Since the coffee is going to be of premium quality and the concept is unique, Daniele assumes that the customers are going to be willing to pay $6/cup at average (considering a variety of drinks from $2 to $9). They also plan to sell around 30 sandwiches/day at an average price of $9/sandwich. The coffee shop will