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You have just completed a $21,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years
You have just completed a $21,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $97,000, and if you sold it today, you would net $116,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $34,000 plus an initial investment of $4,500 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? Identify the relevant incremental cash flows below: (Select all the choices that apply.) A. Capital expenditure to outfit the space. B. Amount you would net after taxes should you sell the space today. O C. Price you paid for the space two years ago. OD. Initial investment in inventory. O E. Feasibility study for the new coffee shop. Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar.) 1 $ 2 $ 3 $ 4 Free Cash Flow $
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