You have just completed a $23,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $96,000, and if you sold it today, you would net $114,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $28,000 plus ar initial investment of $5,100 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. C. Price you paid for the space two years ago. D. Initial investment in inventory. E. Feasibility study for the new coffee shop.

You have just completed a $23,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $96,000, and if you sold it today, you would net $114,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $28,000 plus ar initial investment of $5,100 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. C. Price you paid for the space two years ago. D. Initial investment in inventory. E. Feasibility study for the new coffee shop.

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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You have just completed a $24,000 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 $117,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $26,000 plus an initial investment of $5,000 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. C. Price you paid for the space two years ago. D. Initial investment in inventory. E. Feasibility study for the new coffee shop.
You have just completed a $24,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $101,000, 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 $30,000 plus an initial investment of $4,600 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. Capital expenditure to outfit the space. E. Price you paid for the space two years ago. 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 $ CA GA
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You have just completed a $23,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $101,000, and if you sold it today, you would net $113,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $34,000 plus an initial investment of $5,000 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. Price you paid for the space two years ago. B. Feasibility study for the new coffee shop. C. Initial investment in inventory. D. Capital expenditure to outfit the space. ] E. Amount you would net after taxes should you sell the space today.
You have just completed a $25,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $105,000, and if you sold it today, you would net $114,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $35,000 plus an initial investment of $4,700 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. Feasibility study for the new coffee shop. B. Amount you would net after taxes should you sell the space today. C. Initial investment in inventory. D. Capital expenditure to outfit the space. E. Price you paid for the space two years ago. Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar.) E 1 2 3 4 Free Cash Flow C
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 $103,000, and if you sold it today, you would net $113,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $27,000 plus an initial investment of $5,300 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. Feasibility study for the new coffee shop. C. Initial investment in inventory. D. Price you paid for the space two years ago. ] E. Capital expenditure to outfit the space.
18. You have just completed a $18,000 feasibility 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 it today, you would net $114,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $25,000 plus an initial investment of $5,200 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? **round to the nearest dollar**
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