QUESTION TWO (9 marks) Mark Stevens is considering opening a hobby and craft store. He would need $100,000 to equip the business and another $40,000 for inventories and other working capital needs. Rent for the building to be used by the business will be $24,000 per year. Mark estimates that the annual cash inflow from the business will amount to $90,000. In addition to building rent, annual cash outflow for operating costs will amount to $30,000. Mark plans to operate the business for only six years. He estimates that the oquipment and furnishings could be sold at that time for 10% of their original cost. Mark uses a discount rate of 16%. (Ignore income taxes in this problem.) Required: Would you advise Mark to make this investment? Why? Use the net present value method. Complete the chart below showing the individual items and their present values in order to calculate the net present value of this investment. Round all computations to the nearest dollar. Item Years Cash Flow PV