You are considering buying a restaurant. You estimate its profits to be R600,000 per year. You plan to fund the acquisition with a bank loan at a 15% interest rate. The restaurant has a 7 year lease on its premises which you don't expect will be renewed. You estimate that you could sell the restaurant's equipment for R200,000 at that time. What is the maximum amount you should be prepared to pay for the restaurant?
A.R2,496,000
B.R2,696,000
C.R3,328,000
D.R2,571,200