2. Fashion Pizza Company is considering investing 5 million in a new outlet in England. The investment will be depreciated straight line to zero. It has been estimated that the investment will generate an EBITDA for ten years cash flows of 800,000 per year, gross of tax, and the outlet can be sold for 1.2 million in ten years time. The cost of equity of Fashion Pizza Company is 11%, the tax rate is 20% and the company has no debt, planning to fund the new investment using only retained earnings. The endeavour will also require 250,000 in working capital, to be recovered after the outlet is sold. Assuming cash flows will occur at the end of each year, should Fashion Pizza Company make the investment in the new outlet?