ne Limit: 3.00.00 Time Left 2:17:39 Zachary Oliver Attempt ape 1: 1 2 3 5 6 7 8 9 .0 11 12 Bar's Winery is considering opening a winery near campus. To open the winery, they must purchase $370 in equipment Shipping of the equipment will cost $50 and installation of the equipment will be $40. In addition to the equipment, Bill's Winery will build a new building with an all-in price of $1000. Bu bought the land for the winery for $200 five years ago and has no plans for the land if he does not build the winery. The modifications and equipment are depreciated using the 5-year MACAS schedule. Bur's Winery will operate the winery for four years, and then expects to sell the winery to an investor for $1.200 plus any working capital The firm will have some one-time expenses in year 1 of $170, primarily licenses and legal fees. To operate the winery, Bar's Winery will need an increase in Inventory of $17, an increase of Accounts Receivables of $24, and will have an increase in Accounts Payable of $49. Working capital will be recovered when we sell the winery Annual sales are as follows: $400 in year 1. $1.200 in year 2 $2,200 in year 3, and $2.500 in year 4. Cost of Goods Sold (excluding overhead, depreciation and lease payments) are 40% of annual sales Production laboris 20% of sales. To manage the company, executives and administrators must be hired at an annual foed cost of $260. Property taxes and alcohol licenses are $300 per year Bars has an agreement for a 3-year 8% amortized Small Business Administration Loan to finance part of the project. The firm needs now equity investors to find the expansion and Bil's Winery has only been able to find one equity Investor Both SBA and this equity Investor requires that the firm have audited financial statements. The outside investor gots to choose the auditor and the auditor would cost the company $20 per year. The firm's tax rato is 20%. The cost of capital is 13% What are the initial Cash Flows in Your O? What are the Operating Cash Flows in Your 2? What are the Terminal Cash Flows in Your 4? (I want only Terminal Cash Flowe, not operating cash flows in your 4) Show your workinputs for partial credit. If you complete this in a spreadshot you can copy paste your answer into the answer area 13 15 16 17 10 19