You have just completed a $16,000 feasibility study for a new coffee shop in some...
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Accounting
You have just completed a $16,000 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 $118,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $31,000
plus an initial investment of $4,800 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity?
Calculate the initial cash flow below:(Select from the drop-down menus and round to the nearest dollar.)
| Capital Expenditure (outfit of space) | ||
| Opportunity Cost. | ||
| Change in Net Working Capital
|
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