Accounting You are a CFO and your company is today making a decision whether to open a new store. Over the past two years the company has invested substantial amounts of capital implementing a “drive-through” service to its existing store network. The service is now fully operational and there is debate among management about whether the $900,000 investment in this service should be classified as a tax-deductible expense in the new store's "cash flows at the start". 

Explain how you would treat the $900,000 investment in the financial analysis of the new store.

Answer rating: 100% (QA)

The amount of 900000 is incurred as an investment in opening the new store This amount has ... View the full answer