Chipotle is evaluating a proposal to open a new restaurant located in Plano Texas. In the proposal (capital budget) Chipotle expects to spend $800,000 on new equipment (not replacement equipment). Would this be modeled as an acquisition stage cash flow, an operating stage cash flow, or a disposition stage cash flow? Would this be modeled as a positive or negative cash flow?

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The expenditure of 800000 on new equipment for opening a new restaurant ... View the full answer