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Keep, Modernize or Abandon store Fairfield is considering abandoning a store with no debt. Fairfield believes they could sell the store for $300,000 after taxes
Keep, Modernize or Abandon store Fairfield is considering abandoning a store with no debt. Fairfield believes they could sell the store for $300,000 after taxes or it could be kept and it will produce after-tax cash flows of $95,000 for each of 5 years. In addition, the possibility of modernizing the store with additional after-tax cash flow consequences solely for the modernization are as follows: 0 1 2 3 4 5 $65,000 $11,000 $22,000 $20,000 $20,000 $15,000
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