Capital Budgeting Decision: You are considering adding a new branch to your operation. The initial cost of the building and equipment is $1 Million with an expected life of twenty years. The lease payment for the land is $20,000 per year. With a new branch the company will need to increase its working capital by $100,000. Salary, operating expenses, and utility expenses will be $130,000 per year. The new branch will generate revenues of $350,000 per year. Revenues and expenses will remain stable throughout the life of the project. Assume straight line depreciation. The firms discount rate is 10%, and the tax rate is 40%. What is the cash flow in year 0? What is the cash flow in the last year of the operation? What are the cash flows for the years 1 through 19? What is the annual depreciation expense? What is the NPV of the new branch?