Annual Revenue: $2400 The operations department tells you Inventory Required on Shelves: $140 Annual Cost of Goods Sold: $1500 Annual Cost of Running Store: $500 Annual Allocated Overhead from HO The forecasting department tells you; Loan to fund construction: $300 Interest Rate: 4%, loan is interest only (no principle payments) Weighted Average Cost of Capital: Depreciation Schedule: Straight-line depreciation over 40 years Tax Plate: The construction department tells you Cost of environmental review (already completed): 565 Purchase Price of Land 20 years ago: $1000 (hint: land is not depreciated) Current Market Value of Land: $1100 [hint: land is not depreciated) Current Pre-Tax Income from renting Land out $75/year Cost of Construction (Labor & Material]: $1800 1a] Your boss tells you to find the unleveraged incremental cash flow of the project for the next four years. Write your answer in the form of a pro forma statement on the next page. 1bj Should you approve this project? Why or why not