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You have just completed a $22,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years
You have just completed a $22,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $103,000, and if you sold it today, you would net $115,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $29,000 plus an initial investment of $5,400 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.) I D A. Amount you would net after taxes should you sell the space today. B. Feasibility study for the new coffee shop. I C. Initial investment in inventory. D. Price you paid for the space two years ago. E. Capital expenditure to outfit the space. D Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar.) 4 Free Cash Flow
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