Your existing business generates $$87,000$ in EBIT.

$$ The corporate tax rate applicable to your business is $25\%.$

$$ The depreciation expense reported in the financial statements is $$16,571.$

$$ You don$$t need to spend any money for new equipment in your existing cafe$$s; however, you do need $$13,050$ of additional cash.

$$ You also need to purchase $$6,960$ in additional supplies$$such as tableclothes and napkins, and more formal tableware$$on credit.

$$ It is also estimated that your accruals, including taxes and wages payable, will increase by $$4,350.$