MC Qu. 47Kelly's Corner Bakery purchased a lot... Kelly's Corner Bakery purchased a lot in Oll City five years ago at a cost of $740,000. Today, that lot has a market value of 5910,000. At the time of the purchase, the company spent $54,000 to level the lot and another 54 400 10 Install storm drains. The company now wants to build a new facility on that site The building cost is estimated at $1,540,000 What amount should be used as the initial cash flow for this project? Multiple Choice 5-1890,000 a $10.000 5-1934.000 $2104000 2050.000 MC Cool Comfort currently sells 300 Class A spa... Cool Comfort currently sells 300 Class A spas, 450 Class C spas, and 200 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does it can sell 375 of them. However, if the new spa is added, Class A sales are expected to decline to 225 units while the Class C sales are expected to decline to 200. The sales of the deluxe model will not be affected Class A spas sell for an average of $12,000 each. Class C spas are priced at $6,000 and the deluxe model sells for $17,000 each. The new mid-range spa will sell for $8,000. What is the value of the erosion? Multiple Choice $600,000 $1,200,000 $1.000.000 $2,400,000 $3,000,000 MC Bruno's Lunch Counter is expanding and expects.... Bruno's Lunch Counter is expanding and expects operating cash flows of $26,000 a year for 4 years as a result. This expansion requires $39.000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $3,000 of net working capital throughout the life of the project What is the net present value of this expansion project at a required rate of return of 16 percent? Multiple Choice $18.477.29 $21,033,33 $28 288.70 $29,416.08 $32.409.57