Question: You have just completed a $18,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years

You have just completed a $18,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $100,000 and if you sold it today, you would net $110,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $35,000 plus an initial investment of $5,100 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity?

Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar.)

Capital expenditure

Opportunity cost

change in net working capital

Free cash flow

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