Scorchys Tacos restaurant is considering expanding into suburban markets in Houston, Texas, with three new locations. Because

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Scorchy’s Tacos restaurant is considering expanding into suburban markets in Houston, Texas, with three new locations. Because of the floods in 2017, many restaurants never reopened, creating a restaurant shortage. These expansion projects will be financed through a line of credit with First Union Texas Bank. Part of this new line of credit includes administrative costs of $200 per month, and the interest payments are expected to be $2,000 per month. The new restaurants will occupy existing buildings, with rent of $2,500 per month. What are the incremental cash flows for the new restaurants?

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Foundations Of Finance

ISBN: 9780135160619

10th Edition

Authors: Arthur J. Keown, John H. Martin, J. William Petty

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