Question
If you have just completed as $24000 feasibility study for a new coffee shop in some retail store you own. You bought the space two
If you have just completed as $24000 feasibility study for a new coffee shop in some retail store you own. You bought the space two years ago for $95000 and if you sold it today it would net $118000 after taxes. Outfitting the space for coffee would require capital expenditure of $29000 plus initial investment of $4800 in inventory. What is the initial cash flow for your analysis of the coffee shop opportunity? Identify the relevant incremental cash flow below: a. Amount you would net after taxes should you sale the space today. b. Feasibility study for the new coffee shop. c. Initial Investment in inventory d. Capital expenditure to outfit the space e. Price you paid for two years ago.
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