45. LO.2 & LO.3 (Time line; payback; NPV) Hollys Fashions is considering expanding its building so it can stock additional merchandise for travelers and tourists. Store man- ager Jill Eliason anticipates that building expansion costs would be $190,000. The firms suppliers are willing to provide inventory on a consignment basis so there would be no additional working capital needed upon expansion. Annual incremental fixed cash costs for the store expansion are expected to be as follows: Year Amount 1 $20,000 2 27,000 3 27,000 4 27,000 5 30,000 6 30,000 7 30,000 8 33,000 Eliason estimates that annual cash inflows could be increased by $60,000 of contribu- tion margin generated from the additional merchandise sales. Because of uncertainty about the future, Eliason does not want to consider any cash flows after eight years. The firm uses an 8 percent discount rate. a. Construct a time line for the investment. b. Determine the payback period. (Ignore taxes.) c. Calculate the net present value of the project. (Ignore