3. You are thinking of opening an internet coffee shop and estimate the following cash flows. The cost of the establishment is $2,800,000 for the building and $880,000 for equipment (tax life of 7 years) and both are placed it into service on January 1, of the first year of operation (these two outlays are modelled as year 0). The business will earn $2,400,000 in revenue the first year and have cash expenses of 76% of revenues during its twenty years of operation. After the first year, sales are expected to grow at 7% per year, expenses will continue at 76% of sales. You will need to calculate depreciation on the building and the equipment using the methods discussed in the chapter. At the end of 20 years. the building and equipment will be sold for an after-tax cash disposition value of $800,000 (so you do not need to calculate this number). No other cash flows will occur during the 20 years of operation. Using a 27 percent tax rate, and a 6.75 percent cost of money, calculate the following: The first years total cash flow_______ The second years total cash flow ______ The net present value of the project ________