Question
In: Finance
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park...
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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; the plant will cost $13 million to build, and the site requires $820,000 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? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) |
| Cash flow amount | $ |
Solutions
jeff jeffy answered 3 months agoRelated Solutions
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park...
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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
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Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park...
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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;...
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Goods imported into a
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