Question 14 You have just completed a $20,000 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 $115,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $30,000 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. Initial investment in inventory. C. Amount you would net after taxes should you sell the space today. D. Price you paid for the space two years ago. E. Feasibility study for the new coffee shop. Calculate the initial cash flow below:Round to the nearest dollar.) 1 (1) $ 2 (2) $ 3 (3) $ 4 Free Cash Flow $ (1) Capital Expenditure (outfit of space) Capital Expenditure (price of space) Change in Net Working Capital Feasibility Study Cost Opportunity Cost (2) Capital Expenditure (outfit of space) Capital Expenditure (price of space) Change in Net Working Capital Feasibility Study Cost Opportunity Cost (3) Capital Expenditure (outfit of space) Capital Expenditure (price of space) Change in Net Working Capital Feasibility Study Cost Opportunity Cost

Question 14 You have just completed a $20,000 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...

Question 14

You have just completed a

$20,000

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

$115,000

after taxes. Outfitting the space for a coffee shop would require a capital expenditure of

$30,000

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.)

Capital expenditure to outfit the space.

Initial investment in inventory.

Amount you would net after taxes should you sell the space today.

Price you paid for the space two years ago.

Feasibility study for the new coffee shop.

Calculate the initial cash flow below:Round to the nearest dollar.)

1	(1)	$
2	(2)	$
3	(3)	$
4	Free Cash Flow	$

(1)

Capital Expenditure (outfit of space)

Capital Expenditure (price of space)

Change in Net Working Capital

Feasibility Study Cost

Opportunity Cost

(2)

Capital Expenditure (outfit of space)

Capital Expenditure (price of space)

Change in Net Working Capital

Feasibility Study Cost

Opportunity Cost

(3)

Capital Expenditure (outfit of space)

Capital Expenditure (price of space)

Change in Net Working Capital

Feasibility Study Cost

Opportunity Cost

Jun 06, 2022

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Question 14 You have just completed a $20,000 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...

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Question 14 You have just completed a $20,000 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...

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Related Questions & Answers

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Question 14 You have just completed a $20,000 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...