You have just completed a $17,000 feasibility study for a new cofee shop in some retail space you own. You bought the space two years ago for $98,000 and if you sold it today, you would net $110,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $35,000 plus an initial investment of $5,000 in inventory. What is the correct initial cash flow for your analysist of the coffee shop opportunity?
Oppurtunity Cost
Capital Expenditure
Change in Net Working capital
Free Cash Flow