Question: You have just completed a $22,000 feasibility study for a new coffee shop in some retail space you own, You bought the space two years




You have just completed a $22,000 feasibility study for a new coffee shop in some retail space you own, You bought the space two years ago for $95,000, and ifyou sold it today, you would net $110,000 after taxes. Outtting the space for a coee shop would require a capital expenditure of $33,000 plus an initial investment of $4,600 in inventory. What is the correct initial cash ow for your analysis of the coffee shop opportunity? Identify the relevant incremental cash ows below: (Select all the choices that apply.) A. Price you paid for the space two years ago. B. Feasibility study for the new coee shop. 3' c. Amount you would net after taxes should you sell the space today. 2' D. Capiml expenditure to outt the space. I L E. Initial investment in inventory. Calculate the initial cash ow below: (Select from the dropdown menus and round to the nearest dollar.) V 696996 1 2 3 4 Free Cash Flow Capital Expenditure (outfit of space) Capital Expenditure (price of space) Change in Net Working Capital Feasibility Study Cost Opportunity Cost
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