Question: 1 1 - 1 . ( Relevant cash flows ) Scorchy's Tacos restaurant is considering expanding into suburban markets in Houston, Texas, with three new
Relevant cash flows Scorchy's Tacos restaurant is considering expanding into suburban markets in Houston, Texas, with three new locations. Because of the floods in 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 $ per month, and the interest payments are expected to be $ per month. The new restaurants will occupy existing buildings, with rent of $ per month. What are the incremental cash flows for the new restaurants?
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