Question: please solve the following: i know the answer i have for the first question is wrong. You have just completed a $17,000 feasibility study for

You have just completed a $17,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $99,000, and if you sold it today, you would net $112,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $28,000 plus an initial investment of $4,700 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? Identify the relevant incremental cash flows below: (Select all the choices that apply.) A. Initial investment in inventory. B. Amount you would net after taxes should you sell the space today. C. Capital expenditure to outfit the space. D. Price you paid for the space two years ago. E. Feasibility study for the new coffee shop. You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in the same amount of time. Thus, you forecast that total sales will increase next year by 25% over the current amount of 108,000 units. If your sales price is $19 per unit, what are the incremental revenues next year from the upgrade? The incremental revenues are $ (Round to the nearest dollar.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
