A quaint but well-established coffee shop the Hot New Caf wants to build a new c

A quaint but well-established coffee shop the Hot New Caf wants to build a new caf for increased capacity. Its expected sales are $800000 for the first 5 years. Direct costs including labor and materials will be 50% of sales. Indirect costs are estimated at $100000 a year. The cost of the building for the new cafe will be a total of $750000 which will be depreciated straight line over the next 5 years. The firms marginal tax rate is 37% and its cost of capital is 12%.For this assignment you need to develop a capital budget. It is important to know what the caf managers should consider within their capital budget. You must also define the key terms necessary to understand capital budgeting. In this assignment please show all work including formulae and calculations used to arrive at financial values. You must answer the following:Your submitted assignment (125 points) must include the following:

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