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

Baker Inc. is looking at setting up a new manufacturing plant in Cleveland, Ohlo to produce widgets. The company bought some land 5 years ago for $4 mimon in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent those faciles from a competitor instead. If the land were sold today, the company would net $6,4 milion. The company wants to build its new manufacturing plant on this land the piant will cost $9.8 million to build and the site requires $965,000 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? Multiple Choice $10765,000 $17365.000 $6,400.000 59.800.000

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