Question: Please answer and show work/provide excel calculations. You are considering adding a microbrewery to one of your firm's existing restaurants. The restaurant currently earmarks advertising
You are considering adding a microbrewery to one of your firm's existing restaurants. The restaurant currently earmarks advertising expenses equal to 9% of its total expected sales revenue. If it adds the microbrewery, it expects its advertising expenses will rise to 15% of total revenues. Total revenues are currently $490 thousand but it expects revenues to double with the addition of the microbrewery. What would be the amount of incremental advertising expenses (in $ thousands, rounded to one decimal place, e.g. 12.3) that would need to be accounted for in analyzing the feasibility of adding the microbrewery? Add your answer Question 10 Your firm is considering building a new office complex and already owns property suitable for the new complex. The current book value of the property is $170 thousand. However, a commercial real estate agent has informed you that an outside buyer is interested in purchasing the property for $500 thousand. When calculating the NPV of this project, what would be the appropriate incremental cash flow for using the property for the new office complex? The firm's tax rate is 33%. Present your result in thousands, rounded to one decimal place (e.g. 12.3). Be certain to place a negative sign in your answer if the transaction is accounted for as a cash outflow
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