Business, 04.04.2020 07:24 mduncan840
The Studebaker dealership in Haslett is considering building a new showroom. The owner’s grandfather bought vacant land in the city 85 years ago for $150,000 on which the new dealership could be built. However, 7-Eleven has made the owner an offer to buy the land for $300,000 if he decides not to build a dealership on the site. The company has decided to do a DCF analysis assuming they will build the dealership on this land. It would cost $850,000 to build the dealership. What would the Initial Investment (cash flow in Year 0) be for purposes of calculating whether or not to build the dealership?
Answers: 2
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The Studebaker dealership in Haslett is considering building a new showroom. The owner’s grandfather...
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