Question
Thomas Keller, chef at Per Se in New York City, is considering adding poutine to the menu at his French restaurant. To make poutine, Keller
Thomas Keller, chef at Per Se in New York City, is considering adding poutine to the menu at his French restaurant. To make poutine, Keller will have to purchase a new deep fat fryer for $10,000. Installation costs for the fryer are expected to be $2,000. To make poutine, Keller will have to carry additional inventory of potatoes, cheese curds, and chicken stock. The additional food inventory is expected to cost $2,000. If Mr. Keller goes ahead with the poutine project, what are the initial cash flows? (Round your answer to the nearest dollar.)
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