Parker & Stone, Inc., is looking at setting up a new manufacturing plant in Sout

Question

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 $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 $6.4 million. The company wants to build its new manufacturing plant on this land; the plant will cost $14.2 million to build, and the site requires $890,000 worth of grading before it is suitable for construction. The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is ________

Explanation / Answer

14.2 mil + .890 - 6.4 mil

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---