1 You are interested in purchasing a business. Current owner of the business is asking $750,000. You estimated that you can borrow a 15-year term loan at 5% interest. You expect 18% return from this project. Current owner opened up the books and you estimated future cash flows. You also estimated that you would be able to sell the business for about $1,100,000 at the end of year 10. Year EBITDA 75,000 78,000 81,000 84,000 87,000 92,000 97,000 102,000 107,000 112,000 NM + 5 6 7 8 9 10 How much can you borrow if you can afford $40,000 a year debt payment at 5% interest rate with 15- year term? Select one: a. 600,000.00 b. 778,474.35 c. 750,000.00 d. 415,186.32