Brenda and Eddie have further analysed the profit made in the first year and are concerned that the project could be loss making. Their year 1 costs and revenues are forecast as follows: Year 1 Revenue Depreciation Materials (note 1) Labour (note 2) Overheads (note 3) Profit/ (loss) 200,000 25,000 49,000 100,000 100,000 (74,000) Note 1 - the materials include 10,000 of surplus inventory that Brenda & Eddie have in their existing restaurants. This inventory has a scrap value of 1000. Note 2 - Labour includes 20% of the 50,000 salary of a manager of an existing branch, who will assist the existing manager of the restaurant in its first year of operation. Note 3 - This is an allocation of corporate overheads Required Assess the relevant cash flows of the project in the 1st year to Brenda & Eddie (ignore the initial start up costs of the project) and advise Brenda & Eddie whether they are right to be concerned.