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In: Finance
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park...
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 3 years ago for $4798465 in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $3848715. An engineer was hired to study the land at a cost of $823164, and her conclusion was that the land can support the new manufacturing facility. The company wants to build its new manufacturing plant on this land; the plant will cost $4984348 million to build, and the site requires $1185814 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?
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jeff jeffy answered 6 months agoRelated Solutions
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park...
Parker & Stone, Inc., is looking at setting up a new
manufacturing plant in South Park to produce garden tools. The
company bought some land six years ago for $5.1 million in
anticipation of using it as a warehouse and distribution site, but
the company has since decided to rent these facilities from a
competitor instead. If the land were sold today, the company would
net $5.4 million. The company wants to build its new manufacturing
plant on this land;...
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park...
Parker & Stone, Inc., is looking at setting up a new
manufacturing plant in South Park to produce garden tools. The
company bought some land six years ago for $5.8 million in
anticipation of using it as a warehouse and distribution site, but
the company has since decided to rent these facilities from a
competitor instead. If the land were sold today, the company would
net $6.1 million. The company wants to build its new manufacturing
plant on this land;...
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park...
Parker & Stone, Inc., is looking at setting up a new
manufacturing plant in South Park to produce garden tools. The
company bought some land 12 years ago for $6 million in
anticipation of using it as a warehouse and distribution site, but
the company has since decided to rent these facilities from a
competitor instead. If the land were sold today, the company would
net $9.8 million. The company wants to build its new manufacturing
plant on this land;...
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park...
Parker & Stone, Inc., is looking at setting up a new
manufacturing plant in South Park to produce garden tools. The
company bought some land six years ago for $5.5 million in
anticipation of using it as a warehouse and distribution site, but
the company has since decided to rent these facilities from a
competitor instead. If the land were sold today, the company would
net $5.8 million. The company wants to build its new manufacturing
plant on this land;...
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park...
Parker & Stone, Inc., is looking at setting up a new
manufacturing plant in South Park to produce garden tools. The
company bought some land six years ago for $3.6 million in
anticipation of using it as a warehouse and distribution site, but
the company has since decided to rent these facilities from a
competitor instead. If the land were sold today, the company would
net $4.1 million. The company wants to build its new manufacturing
plant on this land;...
enny, Inc., is looking at setting up a new manufacturing plant in South Park. The company...
enny, Inc., is looking at setting up a new manufacturing plant
in South Park. The company bought some land six years ago for $8.1
million in anticipation of using it as a warehouse and distribution
site, but the company has since decided to rent facilities
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Your company is looking at setting up a manufacturing plant overseas to manufacture driverless flying cars....
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Question 17 Which of the following represents an advantage of setting up a manufacturing plant in...
Question 17
Which of the following
represents an advantage of setting up a manufacturing plant in a
foreign trade zone?
A company that has set
up a manufacturing plant in a foreign trade zone is free from
paying U.S. income taxes.
Goods sold in a
foreign trade zone are exempt from paying duty.
Goods imported into a
foreign trade zone are duty-free until they leave the zone for sale
in the United States.
A company that has set
up a...
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