5. You are building a rollercoaster at Cedar Point. The initial cost of this project is $3,600,000. Revenue from the new rollercoaster will be 2,000,000 per year for four years. Maintenance costs are $500,000 per year and the machine will be straight line depreciated over four years. A $200,000 immediate increase in working capital is needed, which will be recovered in full during year 4. The discount rate is 16% and the firm has a 35% marginal tax rate. Should you build the roller coaster? Justify with the NPV from the project's cash flows. Year 0 Year 1 - 3 Year 4 + A Revenues - A Costs - A Depreciation = A EBIT - Taxes = A NOPAT + A Depreciation =CF Operations - CapEx - A Net WC =Net CFs