Ellay corp. is considering a new expansion project that consists ofsetting up a new manufacturing plant. The company bought a land 3 years ago for $2.1 million but did not use it. The company wants to build its new manufacturing plant on this land; the plant will cost $2.9 million to build. If the land was sold today, the company would net $2.2 million. The company would also invest in its Net working capital for an amount of $250,000.
What is the proper cash-flow amount to use as the initial investment in fixed assets when evaluating this project?

a). $5.2 million
b). $5,450,000
c). $ 5.1 million
d). $5, 250,000

Answer rating: 100% (QA)

51 million Explanation Initial investment in fixed ... View the full answer