Joes Diner is going to open a new store and has two possible floor plans that include either a smoothie bar or a soda fountain. The soda fountain option would generate $2 million in revenues, while the smoothie bar option would generate $2.3 million in revenues. The soda fountain option would require $750,000 in operating expenses, $25,000 in additional working capital, and $450,000 in capital expenditures. The smoothie bar option would require $950,000 in operating expenses, $100,000 in additional working capital, and $500,000 capital expenditures. The company has a marginal tax rate of 30%. In each case, capital cost allowance is 20% of the capital expenditure. Based on the initial and net cash flow for the first year only, what would you propose to Joes Diner? Would you change your recommendation if the company could reduce operating expenses by 10%?