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20 Sep 2018
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 7 years ago for $6 million in anticipation of using it as a warehouse and distribution site. If the land were sold today, the company would net $9.4 million (after tax). The company wants to build its new manufacturing plant on this land; the plant will cost $13.2 million to build, and the site requires $1,410,000 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
| Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 7 years ago for $6 million in anticipation of using it as a warehouse and distribution site. If the land were sold today, the company would net $9.4 million (after tax). The company wants to build its new manufacturing plant on this land; the plant will cost $13.2 million to build, and the site requires $1,410,000 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 |
Jean KeelingLv2
21 Sep 2018
