Question: Baker inc. is looking at setting up a new manufacturing plant in cleveland, ohio to produce widgets. The company bought some land 5 years ago

Baker inc. is looking at setting up a new manufacturing plant in cleveland, ohio to produce widgets. The company bought some land 5 years ago for $4 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 $9.8 million to build, and the site requires $965,000 worth of grading before it usbsuitable for construction. what is the proper cash flow amount tonuse as an initial investment in fixed assets when evaluating this project?

Multiple Choice $17,165,000 $9.800,000 $6,400,000 $10,765,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

java form please Given 4 integers, output their product and their average using integer arithmetio. Ex if the input is: 8. 10.54 the output is: 16006 Note: Integer division discards the fraction...

Browns inc., is looking at setting up a new manufacturing plant in Cleveland, Ohio to produce foctballs. The company bought some land 5 years ago for $6.4 million in anticipation of using it as a...

Browns Inc., is looking at setting up a new manufacturing plant in Cleveland, Ohio to produce footballs. The company bought some land 2 years ago for $ 5 . 5 million in anticipation of using it as a...

Baker Inc, is booking at setting up a new manufacturing plant in Cleveland, Onio to produce wetgets. The company bought some and 5 years ago for $4 milion anticipation of using it as a Warehouse and...

please answer both if possible thank you! Dog Up! Franks is looking at a new sausage system with an installed cost of $850,200. This cost will be depreciated straight-line to zero over the project's...

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 $5.4 million in anticipation of using it...

Please see attached file for complete questions set. 1.W&B Corp. has current liabilities of $460,000, a quick ratio of .83, inventory turnover of 5.9, and a current ratio of 1.5. What is the cost of...

Parker and 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 $7.5 million in anticipation of using...

A firm is reviewing a project with labor cost of $8.60 per unit, raw materials cost of $24.85 a unit, and fixed costs of $11,000 a month. Sales are projected at 10,600 units over the 3-month life of...

Can you help me with these? Please show how you got each answer. Slow Ride Corp. is evaluating a project with the following cash flows: Year 0 1 2 3 4 5 Cash Flow -$29,900 12,100 14,800 16,700 13,800...

Repeat question 9, but this time assume that Rollins, Inc., expects the 180-day forward rate of the pound to substantially underestimate the spot rate to be realized in 180 days.

QUESTION 1 Determine the total capacitance of the configuration of the capacitor shown below the data given Take 14:42 7:d=2 mm; d2 = 3 mm; S = 30 cm Conducting plates Arca S 10 points Save As

5. The event occurs when the user selects a different item in a list box. a. SelectionChanged b. SelectedItemChanged c. SelectedValueChanged d. none of the above

An aquarium 2 m long, 1 m wide, and 1 m deep is full of water. Find the work needed to pump half of the water out of the aquarium. (Use the fact that the density of water is 1000 kg/m)

Water is to be pumped from a lake to a ranger station on the side of a mountain (see figure). The flow rate is to be 95gal/mm, and the flow channel is a standard 1-in. Schedule 40 steel pipe (ID =...

Stanford Simmons, who recently sold his Porsche, placed $ 10,000 in a savings account paying annual compound interest of 6 percent. a. Calculate the amount of money that will have accrued if he...

Samuelson and Messenger (SAM) began 2018 with 200 units of its one product. These units were purchased near the end of 2017 for $25 each. During the month of January, 100 units were purchased on...

You are in a line at the bank drive-through and 10 cars are in front of you. You estimate that the clerk is taking about five minutes per car to serve. How long do you expect to wait in line?

The critical path is used to determine: Group of answer choices The total cost of a project Which tasks are linked and if accomplished on time will result in the shortest duration for the project If...

6. Volunteer to work in a context that allows you to interact with people you have not spent time withfor example, volunteer at a homeless shelter. At the start of your work, make a list of schemata...

3. Read a local paper and pay attention to how the language in stories shapes your perceptions of events and people. Identify examples of how language shapes perceptions.

4. Think of someone you know who is personcentered. Describe the specifi c skills this person uses and how they affect his or her communication.