Question: Galaga Company is considering expanding their existing vegetable processing operations with a new plant in Abbeville, SC. The plant is expected to produce 8,422,000 pounds

Galaga Company is considering expanding their existing vegetable processing operations with a new plant in Abbeville, SC. The plant is expected to produce 8,422,000 pounds of processed vegetables each year for the next 15 years (1,000 pounds per hour, 24 hours per day, 353 days per year). The land for the plant will cost approximately $500,000. Construction of the physical plant building will cost approximately $18,500,000, and the required investment in equipment will be an additional $22,500,000. The initial investment in net working capital required to have the plant operating at full capacity will include $2,500,000 in cash, $1,800,000 in receivables, and $650,000 in inventory, which will be partially funded by $250,000 of supplier financing
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