Foodie Supply (FDS), an upscale restaurant supply chain, currently operates nine stores in Tennessee and Alabama. Management is contemplating building a tenth store across town from its most successful outlet. The company already owns the land for the store and a warehouse on it, which can be used as the store. Currently FDS rents the warehouse out for $300,000 per month. FDS has purchased the land 10 years ago for $1 mln. Last month, the marketing department spent $20,000 on market research to determine the extent of customer demand for the new store. The research has determined that the new store would attract customers of the existing FDS store who currently have to drive across the town to the existing store. However, according to the marketing report, if FDS does not open the store in the proposed location, Restaurant Depot, its main competitor will (and will attract all those from-across-the-town customers of FDS). FDS plans to finance new equipment (commercial fridges, stoves, etc.) for the new store with new debt. Now FDS must decide whether to build and open the new store.

Which of the following should be included in the model for estimation of NPV of the new store?

For each item fill in the table:

#	Item	Included (yes/no)	If yes then in which financial statement(s)	If no, explain why not. Be brief.
1	Depreciation of new equipment
2	The loss of sales in the existing retail outlet, if customers who previously drove across town
3	The cost of the land ($1 M ) where the store will be located
4	Rental income of $300,000 that FDS receives for the warehouse
5	Interest expense on the debt financing purchase of equipment
6	The $20,000 in market research spent to evaluate customer demand

To save yourself time during midterm, DON'T MAKE A TABLE, please use the following answer format:

1. Yes, included in....

2. No, because....