The Depot Restaurant has experienced growing sales and management is looking to expand. They currently own...

 

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The Depot Restaurant has experienced growing sales and management is looking to expand. They currently own a lot on Main Street, a good location for a restaurant as indicated by a marketing survey. The survey cost was $20,000. The lot was purchased five years ago at a cost of $300,000. Today, the property could be sold for $560,000 because of the increase in real estate prices. The land will have to be cleared before a new restaurant can be built at a cost of $30,000. The company can then build a new restaurant at an estimated cost of $600,000. Finally, the management has recently allocated $100,000 in new executive salaries to the new store. What is the cost of this expansion project? 4 The Depot Restaurant has experienced growing sales and management is looking to expand. They currently own a lot on Main Street, a good location for a restaurant as indicated by a marketing survey. The survey cost was $20,000. The lot was purchased five years ago at a cost of $300,000. Today, the property could be sold for $560,000 because of the increase in real estate prices. The land will have to be cleared before a new restaurant can be built at a cost of $30,000. The company can then build a new restaurant at an estimated cost of $600,000. Finally, the management has recently allocated $100,000 in new executive salaries to the new store. What is the cost of this expansion project? 4

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