Question: ABC Inc., is looking at setting up a new manufacturing plant in Loft Park to produce garden tools. The company bought some land 7 years

ABC Inc., is looking at setting up a new manufacturing plant

ABC Inc., is looking at setting up a new manufacturing plant in Loft Park to produce garden tools. The company bought some land 7 years ago for $5 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 $9.8 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 $882,000 worth of grading before it is suitable for construction. Required: What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? O $24,882,000 O $23,118,000 $26,126,100 O $19,086,720 O $24,000,000

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