After a Trip to Bordeaux France You Are Considering Opening

After a trip to Bordeaux France you are considering opening a restaurant based on Restaurant L'Entrecote.You will offer a fixed menu of salad,steak and French fries.Your innovation is that you will use a bordelaise (red wine) sauce instead of a tarragon butter sauce.You plan to run the restaurant for two years and then retire.Start-up costs,to be incurred immediately,are $500,000.Start-up costs include kitchen equipment,kitchen supplies,renovations,furniture,fixtures,and the point-of-sales system.Assume that all of those assets are classified as 5-year property.The assets can be sold for $150,000 after two years.
You expect 100 diners per night.The restaurant will be open for 300 nights per year.The average diner orders food with a menu price of $35 and beverages with a menu price of $15.Food costs are 34% of the menu price and beverage costs are 50% of the menu price.The nightly wages are $2,160 (for the chef,5 kitchen staff,a bartender,the Maitre d' and 10 wait staff) .Municipal tax,rent,and utilities,are $41,400 per annum.Assume that all revenues and operating expenses are received (paid) at the end of each year.The small business tax rate is 20%.The cost of capital is 10%.When the restaurant opens you will have to invest in an inventory of wine,beer and liquor costing $50,000.What are the terminal year cash flows?
MACRS Depreciation Rates

A) $357,752
B) $68,600
C) $50,000
D) $214,880
E) $432,880