Respuesta :
Your recognition of relevant cash flows is accurate.
Find below the calculation of initial cash flow below:
Capital expenditure (outfit of space) Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $25,000
Change in net worth capital (i.e inventory cost) Â Â Â Â Â Â $4,600
Opportunity cost ($111,000 that would have been    $111,000
received)
Free Cash flow                                  $140,600
Cash flow- The net balance of cash moving into and out of a business at a given point in time is referred to as cash flow. A business's cash flow is constantly in and out. When a retailer buys inventory, for example, money leaves the company and goes to its suppliers. Â
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