A quaint but well-established coffee shop, the Hot New Café,
wants to build a new café for increased capacity. Consider the
following financial aspects of this endeavor: Expected sales are
$800,000 for the first 5 years. Direct costs, including labor and
materials, will be 50% of sales. Indirect costs are estimated at
$200,000 a year. The cost of the building for the new café will be
a total of $850,000, which will be depreciated straight line over
the next 5...