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 $5.7 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 million. 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 $840,000 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?
Ans: Cash flow amount: $20,040,000
cash flow amount = land + building + grading
=6,000,000+13,200,000+480,000
=20,040,000
You might also like to view...
______ refers to the use of space and distance in communication.
Fill in the blank(s) with the appropriate word(s).
When using FYI messages, who is likely to gain the most benefit from the message?
A) The organization B) The sender C) The receiver D) Those who receive a blind carbon copy E) Both the sender and the receiver
Top managers positively drive innovation when they:
a. have a future focus. b. have an external focus. c. view innovation is more than product development. d. both a & b above. e. all of the above
If asked to indicate your desired salary on an application, it is best to write ________ (or Open) rather than specify a number
Fill in the blank(s) with correct word