Question: please answer all questions 2. Concepts used in cash flow estimation and risk analysis A successful sushi chain in Hong Kong spent $500,000 to conduct
please answer all questions 2. Concepts used in cash flow estimation and risk analysis A successful sushi chain in Hong Kong spent $500,000 to conduct a study on whether to open a location in the United States. The study showed that the best place for the company to open their first location would be in Chicago. When conducting its capital budgeting analysis, how should the company account for the cost of the study when estimating the amount of the initial investment that the new store will require? The company should include it in the amount of the initial investment. The company should ignore it. A large soft-drink company currently produces regular cola and diet cola. It is considering introducing a new soft drink that tastes like regular cola but has zero calories like the diet cola. The new zero-calorie drink that tastes like regular cola is most likely to produce externality. 2. Concepts used in cash flow estimation and risk analysis A successful sushi chain in Hong Kong spent $500,000 to conduct a study on whether to open a location in the United States. The study showed that the best place for the company to open their first location would be in Chicago. When conducting its capital budgeting analysis, how should the company account for the cost of the study when estimating the amount of the initial investment that the new store will require? The company should include it in the amount of the initial investment. an environmental hould ignore it. a negative within-firm y currently produces regular cola and diet cola. It is considering introducing a new soft drink that tastes like regular cola but a positive within-firm diet cola. The new zero-calorie drink that tastes like regular cola is most likely to produce externality
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