You have just completed a $20,000 feasibility study for a new coffee shop in some retail space yo the space two years ago for $105,000, and if you sold it today, you would net $116,000 after taxe: space for a coffee shop would require a capital expenditure of $35,000 plus an initial investment 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. C. Feasibility study for the new coffee shop. D. Initial investment in inventory.

You have just completed a $20,000 feasibility study for a new coffee shop in some retail space yo the space two years ago for $105,000, and if you sold it today, you would net $116,000 after taxe: space for a coffee shop would require a capital expenditure of $35,000 plus an initial investment 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. C. Feasibility study for the new coffee shop. D. Initial investment in inventory.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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