Business, 03.08.2019 00:20, TerronRice

Bruce moneybags owns several restaurants and hotels near a local interstate. one restaurant, beef and more, originally cost $1.8 million, is currently fully paid for, but needs modernized. bruce is trying to decide whether to accept an offer and sell beef and more, as is, for the offer price of $1.1 million or renovate the restaurant himself. the projected renovation cost is $1.3 million. the restaurant would need to be shut down completely during the renovation which would cause an aftertax net loss of $90,000 in today's dollars. the estimated present value of the cash inflows from the renovated restaurant is $3.2 million. when analyzing the renovation project, what cost, if any, should be included for the current restaurant?

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Bruce moneybags owns several restaurants and hotels near a local interstate. one restaurant, beef an...