Parker & Stone, Incorporated, is looking at setting up a new manufacturing plant in South Park...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Parker & Stone, Incorporated, 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 $8.3 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. If the land were sold today, the company would net $11.1 million. The company now wants to build its new manufacturing plant on this land; the plant will cost $22.3 million to build, and the site requires $980,000 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? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole number, e.g., 1,234,567. Cash flow Parker & Stone, Incorporated, 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 $8.3 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. If the land were sold today, the company would net $11.1 million. The company now wants to build its new manufacturing plant on this land; the plant will cost $22.3 million to build, and the site requires $980,000 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? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole number, e.g., 1,234,567. Cash flow
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Roberts Originals Co. (ROC) provides new and unique cases and otherassignments to professors each semester to ensure that students will not be able to find the solutions published online. Due to the...
-
What is the most common event that causes the inventory account to increase? decrease?
-
Suppose that X is compact and f is a continuous one-to-one function from X onto Y. Then f is an open mapping, which implies that f -1 is continuous and f is a homeomorphism.
-
The Whitney Bluebirds football team sells a 15 -game season ticket for \(\$ 180\). Assume that the team sells 2,000 season tickets on August 10. The tickets are all used for admission. a. Prepare a...
-
(a) To help her make a decision, Taliesha has asked you to list two positive points and two negative points about each plan. Prepare such a list. (b) Why might Talieshas employer provide an incentive...
-
What is project management? Give an example of a project based on your definition of a project? How important is project management in today's environment? must be at least 200 wo-rds
-
Assume that you have just started business as an actuarial consultant and are faced with two choices in terms of long term, full-time contracts. (If you take one, you cannot take the other). a. The...
-
A swimmer in the ocean observes one day that the ocean surface waves are periodic and resemble a sine wave. The swimmer estimates that the vertical distance between the crest and the trough of each...
-
Find the vertex of the graph. f ( x ) = x ^ 2 + 6 x + 1
-
. How would a person create and claim value in leadership ability via the use of resource allocation theory and constrained utility maximization?
-
Paul corporation of profit, maximizing monopoly. It sells a patented rabies vaccine for pets and earns economic profits.
-
Find the vertex of the graph. f ( x ) = 2 x ^ 2 3 x + 5
-
What is a 'distro'? How many versions of Linux can you find (and list a few)? What is the Apple OS built or based on? mint@mint- File Edit View Search Terminal Help mintemint - s Run VirtualBox, then...
-
As water moves through the hydrologic cycle, water quality changes are common because of natural phenomena or anthropogenic pollution. Using Figure 11.1, describe how water-quality changes occur...
-
Four independent situations are given below. Assume that partners of the existing partnership are Kyle Bowen and Susan Wong. The new partner is Angie Mills. For each situation, prepare the...
-
A cash receipts journal is provided in the Working Papers. Work independently to complete the following problem. David Rice and Tanya Taylor agree to form a partnership on July 1 of the current year....
-
Carmen Estrada and Paula Jeter agree to form a partnership on June 1 of the current year. The partnership assumes the assets and liabilities of Carmens existing business. Paula invests cash equal to...
Study smarter with the SolutionInn App