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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 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; the plant will cost $18.1 million to build, and the site requires $950,000 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?
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jeff jeffy answered 1 month 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 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...
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;...
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
elsewhere. The land would net $10.9 million if it were sold today.
The company now wants to build its new manufacturing plant on this
land; the plant will cost $22.1 million to build, and the...
Macon Inc. is looking at setting up a manufacturing plant in Kirksville. This will be a...
Macon Inc. is looking at setting up a manufacturing plant in
Kirksville. This will be a 6-year project. The company bought the
land in Kirksville last year for $1.5 million in anticipation of
using it as a warehouse. The land is now appraised for $1.7 million
after-tax. In 6 years, the after-tax value of the land is estimated
for $2 million. The plant and equipment will cost $9.3 million to
build and will be depreciated straight-line to zero over the...
Your company is looking at setting up a manufacturing plant overseas to manufacture driverless flying cars....
Your company is looking at setting up a manufacturing plant
overseas to manufacture driverless flying cars. The company bought
some land in that that was just appraised for $3.8 million after
tax. The proposed project will last five years. It is expected that
you can sell the land at the end of 5 years for $4.1 million. The
manufacturing plant will cost $34 million to build.
The following market data on your company are current. Debt:
195,000 bonds with a...
Trademark Inc. is planning to set up a new manufacturing plant in New York to produce...
Trademark Inc. is planning to set up a new manufacturing plant
in New York to produce safety tools. The company bought some land
six years ago for $4.3 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 sell for $4.6 million on an
after-tax basis. In four years, the land could be sold for...
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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