Use the following information and the Hubbart formula to answer the next 4 questions: 150-seat restaurant $8,000,000 is needed to construct the restaurant; no additional investment is needed in working capital The owners have 6,000,000 in cash and borrow the rest from the bank at 5% The projected average seat turnover is 2 (use 320 days open in a year) The stockholders require a 15% return on their investment annually The restaurant pays income taxes at the rate of 25% The restaurant’s estimated undistributed expenses, not including income taxes, total $2,000,000 The forecasted cost of food sold and variable labor is 50 percent of sales What is the projected Net Income?