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You have just completed a $20,000feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago
You have just completed a $20,000feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for$100,000,and if you sold ittoday, you would net$115,000after taxes. Outfitting the space for a coffee shop would require a capital expenditure of$30,000plus an initial investment of $5,000 in inventory. What is the correct initial cash flow for your analysis of the coffee shopopportunity?
Calculate the initial cash flowbelow: (Select from thedrop-down menus and round to the nearestdollar.)
1 | $ | ||
2 | $ | ||
3 | $ | ||
4 | Free Cash Flow | $ |
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