its business by selling cookies. The CFO of CC's has collected the following information. The new cookies will generate $1,500,000 in sales cach year for the next 10 ycars. A portion of these new sales, CC's Cupcakes wants to expand S500,000, will come from existing customers who switch from cupcakes to cookies. of the expansion, operating costs will increase by $600,000 per year. This number reflects the cost reduction of producing fewer cookies. The firm spent $200,000 on market research and testing the new recipe. . Th e company uses straight-line depreciation. The project has an economic life of 10 years d otal cost of the plant, property and equipment that will be required for the project is $1,200,000. The book value will depreciate to O at project completion. The salvage value is estimated to be $100,000. ee's will increase net operating working capital by $50,000 at the beginning of the project, and it will be liquidated at the end of the project. CC's marginal tax rate is 40%. CC's weighted average cost of capital (wACC) is 15%. 1. What is (are) the irrelevant cash flow(o) in the capital budgeting decision? List the cash flows). 2. What is the yearly depreciation expense? Show your calculations and circle your final answer. 3. What is the initial net cash flow of the project (i.e., CF0)? List the relevant cash flows included in your calculation. Cin your final answer. What is the project's operating net cash flow in year 7? Show your calculations and circle your final answer. Vhat is the project's total cash flow in year 10? Show your calculations and circle your final answer. t is the NPV of this project? Show the calculator steps and circle your final answes