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Calculating 'cash flows at the start' Marquee Company ( MARQ ) is considering opening a new club. Over the past two months, MARQ has already
Calculating 'cash flows at the start'
Marquee Company MARQ is considering opening a new club.
Over the past two months, MARQ has already incurred expenses of $ relating to market research used to identify new cocktail combinations to be served at the new club.
MARQ will have a promotional event on the day the new club opens, and will include an appearance from Australian movie star Margot Robbie. The promotional event will cost $this cost is a tax deductible expense
The new club costs $ today. If the new club goes ahead, MARQ must immediately dispose of old furniture valued at $ today. The old furniture initially cost $ five years ago and is fully depreciated for tax purposes.
For the new club, MARQ predicts that $ of inventory will be required today, and an additional $ of trades receivable will be required today on top of the existing level of $
Managers want to raise equity to help fund the opening of the new club. MARQ will pay dividends of $ per share to the shareholders every year. MARQ have shares on issue.
For the new club, the trade payable balance will decrease from the current level of $ to $ if the new club proceeds. Assume the company tax rate is
What are the 'cash flows at the start'?
Describe and list separately each cash flow and the corresponding amount on a new line
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