You are an analyst in the corporate finance department of Lavatte Carling Corp, a beer brewing company headquartered in London. The company's management considers introducing a new brand of beer under a name Russian Mudslide. You have been called upon to analyze this project. Market research analyst hired by the Lavatte's management for $0.5 million estimated that the new brand will generate $150,000 in sales revenues per year. The marketing research analyst also estimated that the introduction of the new beer brand will increase popularity of the restaurant chain owned by Lavatte, which will result in an increase in non-drink related revenues by $50,000 per year. Meanwhile, the company has already spent $70,000 on advertising a new brand to public. The annual variable costs are expected to be 60% of the revenues and fixed costs are projected to be $26,500 per year. The new buildings and equipment necessary for the production of new beer brand would have an up-front total cost of $65,000. For tax purposes, this cost will be depreciated to zero over five years using straightline depreciation. To maintain its exclusivity, the new brand will be produced only during three years. After that the company plans sell the buildings and equipment for an estimated value of $20,000. To start the project the company will also need to spend $15,000 in cash to purchase additional inventory. When stores are closed in four years the company will be able to recover 75% of this $15,000. Assuming the company's tax rate is 30 percent find the cash flows that will occur as a result of this project. Show your work on the next page