completed a $15,000 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 $35,000 plus an initial investment of $5,500 in inventory. What is the correct initial cash f

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter10: Financial Statements And Reports
Section: Chapter Questions
Problem 3.5C
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You have just completed a $15,000 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 $35,000 plus an initial investment of $5,500 in inventory. What is the correct initial cash flow for your analysis of the coffee shop​ opportunity?

Capital Expenditure (outfit of space)
Capital Expenditure (price of space)
Change in Net Working Capital
Feasibility Study Cost
Opportunity Cost
Transcribed Image Text:Capital Expenditure (outfit of space) Capital Expenditure (price of space) Change in Net Working Capital Feasibility Study Cost Opportunity Cost
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
GA
ff
GA
$
Transcribed Image Text: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 GA ff GA $
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