Question: You have just completed a $21,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years
You have just completed a $21,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $95,000, and if you sold it today, you would net $120,000 after taxes. Outfiting the spece for a coffee shop would require a capitat expenditure of $34,000 plus an initiel investrnent of $5,300 in inventory. What is the conrect initial cash flow for your analysis of the colfee shop oppontunity? Identify the relevant increnental cash flows below. (Select al the choices that apply.) A. Amount you would net after taxes should you sel the space foday B. Cepital expenditure to outfit the space. C. Feasbitity study for the new cotlee shop. 10. Initial investment in inventory. 10. Price you paid for the space two years ago
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