Question: You have just completed a $15,000 feasibllity study for a new cotlee shop in some retail space you own. You bought the space two years
You have just completed a $15,000 feasibllity study for a new cotlee shop in some retail space you own. You bought the space two years ago for $96. 000 , and if you sold it today, you would net $118,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $28,000 plus an initial investment of $5,400 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? A. Initial imvestment in inventory. B. Feasibility study for the new coffee shop. C. Amount you would net atter taxes should you sell the space today. D. Capital expenditure to outfit the space. E. Price you paid for the space two years ago
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
