Working capital and capital budgeting.Farbuck's Tea Shops is thinking about opening another tea shop. The incremental cash flow (not including the working capital investment) for the first five years is as follows: Initial capital costequals=$3,500,000 Operating cash flow for each year equals=$1,000,000 Recovery of capital assets after five years equals=$240,000 The hurdle rate for this project is 12%. If the initial cost of working capital is $510,000 for items such as teapots, teacups, saucers, and napkins, should Farbuck's open this new shop if it will be in business for only five years? What is the most it can invest in working capital and still have a positive net present value? Should Farbuck's open this new shop if it will be in business for only five years?(Select the best response.) A.Yes. Farbuck's should open the new shop because the project's NPV is $ 20,346. B.No. Farbuck's should not open the new shop because the project's NPV is $20,346. C.No. Farbuck's should not open the new shop because the project's NPV is $18,311. D.Yes.Farbuck's should open the new shop because the project's NPV is $18,311.