A circus is considering opening a permanent location for one of its troupes. The company already owns a vacant piece of land that it bought a few years ago for $1,000,000. However, it would also need to buy a large tent at a cost of $400,000 to install on the land. The tent would be depreciated over 4 years using the straight-line method. The management believes that the new location would attract a larger audience and the company's revenues would increase by $800,000 per year for 4 years if the project is accepted. Its expenses would also see an increase of $500,000 per year. The investment in working capital should be equal to 25 % of the revenues generated in the following year.After 4 years, the circus will sell the permanent location - the estimated selling price is $200,000 for the tent $750,000 for the land. Its tax rate is 40% and the opportunity cost of capital is 16%. Should the circus open a permanent location? Please estimate the cash flows and calculate the project's NPV and IRR to make a decision.