Skip to Main content Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question content area top Part 1 Sonja Jensen is considering the purchase of a fast-food franchise. Sonja will be operating on a lot that is to be converted into a parking lot in six years, but that may be rented in the interim for $900 per month. The franchise and necessary equipment will have a total initial cost of $56 comma 000 and a salvage value of $8 comma 000 (in today's dollars) after six years. Sonja is told that the future annual general inflation rate will be 6%. The projected operating revenues and expenses (in actual dollars) other than rent and depreciation for the business are given in the table below. Assume that the initial investment will be depreciated under the five-year MACRS and that Sonja's tax rate will be 30%. Sonja can invest her money at a rate of at least 13% in other investment activities during this inflation-ridden period