Great Coffee House (GCH) is considering a proposal to acquire and operate a coffee shop in the next 4 years. During the last two years GCH has spent $100,000 on market research in order to explore this opportunity, and found the following. The current price of the coffee shop is $700,000, which can be depreciated for tax purposes to a zero salvage value by the straight-line method over the next 10 years. However, the manager of GCH is confident that the coffee shop will be worth $700,000 after 4 years. The coffee shop also requires an initial investment in working capital of $50,000, which will be recovered in full at the end of year 4. The EBIT is expected to be $300,000 in the first year and to grow by 10% every year. Profits are subject to tax at a rate of 35%, and the cost of capital is 15%. a. Identify the relevant cash flows for this project. (8 points) b. Should GCH take the project? (2 points)