Question: You have just completed a $25,000 feasblity study for a new coffee shop in some retail space you own. You bought the space two years
You have just completed a $25,000 feasblity study for a new coffee shop in some retail space you own. You bought the space two years ago for $98.000, and if you sold it today. you would net 5111,000 ater taxes. Outring the space for a colfee shop would require a capital oxpendture of $33,000 plus an initial invesiment of $5,100 in invenlory What is the correct infial canh fow for your analysis of the coffee shop opporturity? Identify the relevant incremental cash flows below: (Select at the choices that apply) A. Feasiblify study for the new cofee shog. B. Capital expendture to outfit the space. c. Price you paia for the space two years ago. D. Amiount you would net after tases thould you sell the space today, E. Initial investment in inventory Calculate the intial cash flow below: (Select from the dree-doen menus and round to the nearest dolar.) \begin{tabular}{|l|l|l} \hline 1 & 5 & 5 \\ \hline 2 & 5 \\ \hline 3 & 5 Free Cash Flow & 5 \\ \hline \end{tabular}
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