You are the CFO of Sunland, Inc., a retailer of the exercise machine Slimbody6 and related accessories. Your firm is considering opening up a new store in Los Angeles. The store will have a life of 20 years. It will generate annual sales of 5,900 exercise machines, and the price of each is $2,500. The annual sales of accessories will be $600,000, and the operating expenses of running the store, includinh labor and rent, will amount to 50 percent of the revenues from the exercise machines. The initial investment in the store will equal $34,900,000 and will be fully depreciated on a straight-line basis iver the 20 years life if the store. Your firm will need to invest $2,500,000 in additional working capital immediately, wnd recover it at the end of the investment. Your firms marginal tax rate is 30 percent. The opportunity cosr of opening up the store is 12.20 percent. What are the incremental free cash flows this project at the beginning of yhe project as well as in 1-19 and 20? (Do not round intermediate calculations. Round NPV answer to 2 decimal places, e.g. 5,265.25 and all other answers to the nearest dollar, e.g. 5,265)

a) Incremental cash flow at the beginning of the project?...... $

b) Incremental cash flow in the year 1-19?

c) Incremenal cash flow in the year 20?

d) NPV of project?

Should you approve it?