Problem 9-1 Relev ant Cash Flows [L1] Kanny, Inc, is looking at setting up a new

Question

Problem 9-1 Relev ant Cash Flows [L1] Kanny, Inc, is looking at setting up a new madachuing lant in South Park The company boughi soe land sx years ago for $7 6 maion of grading betore it is satable for corruction What is the proper cash Now amount to use as the inal invesoent in ed assets whi e nter your nwer in dollars, not millions of dollars, . 1,234,567. Do not round intermediateceliations nsng t as a wrehouse and debution sde, bd the company hes sce deoded round your answer to the nearest shole number,e.o. Cashflow 132910000

Explanation / Answer

The $7.6 million is a sunk cost hence need not to be considered

$10,400,000 + 21,600,000 + 910,000 = $32,910,000

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