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 $97,000, and if you sold it today, you would net $116,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $25,000 plus an initial investment of $5,300 in inventory. What is the correct initial cash flow for you 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. Feasibility study for the new coffee shop.
C. Capital expenditure to outfit the space.
D. Price you paid for the space two years ago.
E. Amount you would net after taxes should you sell the space today.
Calculate the initial cash flow below
all imformation is added
You heve just compleied in 521,000 fombiblity ntudy for a new culleo shop in some retail space you own. You bought the spoce two years ago for $97,000, and it you acld it todey, you would net analyale of the estioe bhop epportunity? Identify the relevant ingemental caeh flow below: (Beloct all the choices thet apply.) A. Iniial investrent in inwerior B. Feaskaty study tor the nere cofloe nhop C. Captal expensture to outf the speon D. Proe you peid for the space two yenars ago. 1. Amount you would nel aher tares shesdd you sell the spaon todny
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