Write the formulas and each steps of calculation, explain what you've calculated if needed. Prepare tables in questions 1

An investor is planning to open a new fast-food restaurant. He has a 5-year lease on a property that would require an investment estimated at $205,000 for redecorating and furnishing. The present cost of capital (borrowed money) is 13%; use this percentage to determine the discount rate each of the 5 years. Using Net Present Value (NPV) method, should he make the investment?

Calculation of net cash flow from the restaurant for the 5 years of operation shows:

Year	Cash Flow
1	$37,500
2	43,800
3	46,300
4	50,000
5	60,000