nvestment in Restaurant Conversion Mr. Stark also wants you to evaluate the potential of turning several existing stores into restaurants. Fifteen stores have been selected as candidates for store conversion. It will cost $580,000 to convert each store into a restaurant, with these costs being capitalized with a 6% applicable CCA rate. The average restaurant is expected to generate an additional $300,000 in after-tax cash flow every year. However, CHI will also lose the $230,000 in annual after-tax cash flow it was already earning from each of the fifteen stores