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You have just completed a $19 000 feasibility study for a new coffee shop in some retail space you own. You bought the space two
You have just completed a $19 000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $100 000, but if you sold it today, you would net $118 000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $28 000 plus an initial investment of $5 100 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? Calculate the initial cash flow below: (Round to the nearest dollar.) $ Opportunity cost Capital expenditure Change in net working capital 6 Free cash flow
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