Investors have decided to open a tiki bar in downtown Boston. The building will cost $2 million today (year 0) and the tiki bar will open one year from today (year 1). They plan to run it for five years (years 1 through 5). They expect annual revenues to be $2 million, annual fixed costs to be $100,000, and annual variable costs to be $1.4 million. Working capital is expected to equal 10% of next year's annual revenues. The building will be straight-line depreciated over 10 years, but they expect to sell it to Starbucks for $1.2 million at the end of year 5. As part of their deal with the city of Boston, the tiki bar will pay no corporate taxes. To raise the money for this project, Tiki Bar Corp. issues a combination of equity (80% of their capital structure) and debt (20%). The market risk premium is 8.0%, the risk-free rate is 4.0%, Tiki Bar Corp.'s beta of debt is zero, and the required return on Tiki Bar Corp.'s equity is 14.0% (assuming 80% of their capital structure is equity and 20% is debt). a. What are the total annual cash flows associated with this project in year 0, year 1, year 2, year 3, year 4, and year 5? b. Calculate the NPV of this project using the cash flows from part (a) and the appropriate discount rate. C. If Tiki Bar Corp. instead decides to raise money using 50% equity and 50% debt, what will the required return on its equity become