Question: You have just completed a $23,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years



You have just completed a $23,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $103,000, and if you sold it today, you would net $113,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $25,000 plus an initial investment of $4,700 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? Identify the relevant incremental cash flows below: Select all the choices that apply.) LA. Amount you would net after taxes should you sell the space today B. Feasibility study for the new coffee shop. I C. Price you paid for the space two years ago. D. Capital expenditure to outfit the space. E. Initial investment in inventory Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar.) 1 2 3 $ 4 Free Cash Flow $ Your company wants to raise $8.5 million by issuing 15-year zero-coupon bonds. If the yield to maturity on the bonds will be 9% (annual compounded APR), what total face value amount of bonds must you issue? The total face value amount of bonds that you must issue is 57 (Round to the nearest cent.) Suppose a five-year, $1,000 bond with annual coupons has a price of $898.41 and a yield to maturity of 6.3%. What is the bond's coupon rate? The bond's coupon rate is % (Round to three decimal places.)
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