Christina currently owns a Mercedes-Benz car dealer in Hagerstown, MD. Her team has noticed that many of their new customers live in Chambersburg, PA, They believe that there is an opportunity for expansion. Her team spent significant amount of time discussing the possibility of opening a new dealership in Chambersburg, PA, but could not decide. Christina estimated that the cost of discussion has reached $30,000 due to loss of productivity for her team; so she decided to hire I&T Consulting firm for $50,000 to survey the area and estimate the demand. The consulting firm has provided the following estimation: . Construction cost for the state of the art facility $1 million. Equipment cost-$1.5 million Number of cars sold at Chambersburg --- 500. Number of cars sold at Hagerstown --- reduced by 100. . Cost of cars sold at Chambersburg--- $25,000 per car. Cost of cars sold at Hagerstown reduced by $2,000 per car. The consulting firm also recommends renovation of Hagerstown office with an estimated cost of $500,000 regardless of how Chistina will decide on the new dealership Classify whether the following cash flows are relevant or irrelevant to the project-opening a new car dealership at Chambersburg. Cost of discussion $30.000 Consulting firm $50,000 Construction cost of $1 million at Chambersburg location Equipment cost $1.5 million Number of cars sold at Chambersburg 100 fewer cars sold at Hagerstown Cost of cars sold at Chambersburg $2,000 lower cost at Hagerstown Renovation cost of $500,000 at Hgerstown location | Choose [Choose | [Choose [Choose) Choose Choose Choose [Choose Choose) D Question 7 3&T Consulting Firm provides the following estimates: Annual sales at Chambersburg location - 594 cars The average selling price $54,000 per car The average cost-$47,000 per car Fixed cost including labor and advertising - $3,000,000 per year The equipment cost is $1,000,000 and falls under 5-year MACRS. The depreciation rates are as follow: Year Rate 1 20% Question B 2 32% 3 19.2% The tax rate is 20%. What is the operating cash flow for Year 27 Ignore the side effects for this question. Operating cash flow for Year 2-S Juse a minus sign for a negative cash flow 4 11.52% 5 11.52% 6 5.76% 0.5 pts 0.5 pts