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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, but 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 incremental cash flow for opening the coffee shop today?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92082156

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