Question: ( Relevant cash flows ) Kenny, Inc is looking at setting up a new manufacturing plant in South Park. The company bought some land six
Relevant cash flows Kenny, Inc is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $ million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $ million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $ million to build, and the site requires $ worth of grading before it is suitable for construction. When evaluating this project, the proper cash flow amount to use as the initial investment in fixed assets is $ million.
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