Question: Parker & Stone NV is looking at setting up a new manufacturing plant in Rotterdam to produce garden tools. The company bought some land six

Parker & Stone NV is looking at setting up a new manufacturing plant in Rotterdam to produce garden tools. The company bought some land six years ago for 6 million in anticipation of using it as a warehouse. 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 890,000 worth of grading before it is suitable for construction. If the land were sold today, the company would net 6.4 million. What is the proper cash flow amount to use as the initial investment in non-current assets when evaluating this project? Why

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