You have just completed a $18,000 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 $114,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $25,000 plus an initial investment of $5,200 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? , eve Identify the relevant incremental cash flows below: (Select all the choices that apply.) -2.42 bur c A. Feasibility study for the new coffee shop. B. Capital expenditure to outfit the space. your C. Price you paid for the space two years ago. 18 D. Amount you would net after taxes should you sell the space today. E. Initial investment in inventory. og Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar) $ -8 1 2 $ P $ 3 $ r 4/ 4 Free Cash Flow Char bunt y off. RUNNI t your

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.