The Depot Restaurant has experienced growing sales, and management is looking to expand. They currently own a lot on Main Street, a good location for a restaurant, as indicated by a marketing survey. The survey cost was $20,000. The lot was purchased five years ago at a cost of $300,000. Today, the property could be sold for $560,000 because of the increase in real estate prices. The land will have to be cleared before a new restaurant can be built at a cost of $30,000. The company can then build a new restaurant at an estimated cost of $600,000. Finally, the management has recently allocated $100,000 in new executive salaries to the new store. What is the cost of this expansion project?
The Depot Restaurant has experienced growing sales, and management is looking to expand. They currently own a lot on Main Street, a good location for a restaurant, as indicated by a marketing survey. The survey cost was $20,000. The lot was purchased five years ago at a cost of $300,000. Today, the property could be sold for $560,000 because of the increase in real estate prices. The land will have to be cleared before a new restaurant can be built at a cost of $30,000. The company can then build a new restaurant at an estimated cost of $600,000. Finally, the management has recently allocated $100,000 in new executive salaries to the new store. What is the cost of this expansion project?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The Depot Restaurant has experienced growing sales, and management is looking to expand. They currently own a lot on Main Street, a good location for a restaurant, as indicated by a marketing survey. The survey cost was $20,000. The lot was purchased five years ago at a cost of $300,000. Today, the property could be sold for $560,000 because of the increase in real estate prices. The land will have to be cleared before a new restaurant can be built at a cost of $30,000. The company can then build a new restaurant at an estimated cost of $600,000. Finally, the management has recently allocated $100,000 in new executive salaries to the new store. What is the cost of this expansion project?
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