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You have just completed a feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for ​, and if you sold it​ today, you would net after taxes. Outfitting the space for a coffee shop would require a capital expenditure of plus an initial investment of in inventory. What is the correct initial cash flow for your analysis of the coffee shop​ opportunity?.

Sagot :

varshamittal029

Your recognition of relevant cash flows is accurate.

Find below the calculation of initial cash flow below:
Capital expenditure (outfit of space)                               $25,000
Change in net worth capital (i.e inventory cost)            $4,600
Opportunity cost ($111,000 that would have been       $111,000
received)
Free Cash flow                                                                   $140,600

Cash flow- The net balance of cash moving into and out of a business at a given point in time is referred to as cash flow. A business's cash flow is constantly in and out. When a retailer buys inventory, for example, money leaves the company and goes to its suppliers.  

For more information on Cash flow visit:
https://brainly.com/question/735261
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