Pantaloon Beer is considering opening a microbrewery nearcampus. To open the brewery, they must purchase $250 in equipment.Shipping of the equipment will cost $40 and installation of theequipment will be $30. Pantaloon will lease a building for $384 peryear. The building will need modifications costing $100. Both themodifications and equipment are depreciated using the 5 year MACRSschedule. Pantaloon will operate the brewery for four years, andthen expects to sell the brewery to an investor for $500 plus anyworking capital. The firm will have some one-time expenses in year1 of $120, primarily licenses and legal fees. To operate thebrewery, Pantaloon will need an increase in Inventory of $17, anincrease of Accounts Receivables of $19, and will have an increasein Accounts Payable of $15. Working capital will be recovered whenwe sell the brewery. Annual sales will begin at $600, the increaseat $600 per year. Thus year 2 sales are $1200, year 3 are $1800 andyear 4 are $2400. Cost of Goods Sold (excluding overhead,depreciation, and lease payments) are 60% of annual sales. Tooperate the company, executives and administrators must be hired,at an annual fixed cost of $500. Over the past two years, Pantaloonhas been testing the concept by using a contract brewer. Lastyear’s sales were $100 with a cost of goods sold of $120. 40% ofthe project financing will come from a three-year 6% annual couponbond. The firm needs new equity investors to fund the expansion andPantaloon has only been able to find one equity investor. Thisequity investor requires that the firm have audited financialstatements. The outside investor gets to choose the auditor and theauditor would cost the company $30 per year. The firm’s tax rate is30%. The cost of capital is 13%. What are the Initial Cash Flows inYear 0? What are the Operating Cash Flows in Year 2? What are theTerminal Cash Flows in Year 4? (I want only Terminal Cash Flows,not operating cash flows in year 4)