Question
You have just completed a $ 24 comma 000$24,000 feasibility study for a new coffee shop in some retail space you own. You bought the
You have just completed a $ 24 comma 000$24,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $ 96 comma 000$96,000, and if you sold it today, you would net $ 115 comma 000$115,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $ 31 comma 000$31,000 plus an initial investment of $ 5 comma 200$5,200 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. Amount you would net after taxes should you sell the space today. B. Initial investment in inventory. C. Feasibility study for the new coffee shop. D. Price you paid for the space two years ago. E. Capital expenditure to outfit the space.
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