White Oak Garden Inc. is looking at setting up a new manufacturing plant in London, Ontario,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
White Oak Garden Inc. is looking at setting up a new manufacturing plant in London, Ontario, to produce garden tools. The company bought some land six years ago for $3.5 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 $3.9 million. The company wants to build its new manufacturing plant on this land; the plant will cost $16.72 million to build, and the site requires $850,000 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? (Enter the answer in dollars. Omit $ sign in your response.) Cash flow amount LA White Oak Garden Inc. is looking at setting up a new manufacturing plant in London, Ontario, to produce garden tools. The company bought some land six years ago for $3.5 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 $3.9 million. The company wants to build its new manufacturing plant on this land; the plant will cost $16.72 million to build, and the site requires $850,000 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? (Enter the answer in dollars. Omit $ sign in your response.) Cash flow amount LA
Expert Answer:
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date:
Students also viewed these finance questions
-
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 $5.2 million in anticipation of...
-
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 million in anticipation of using it...
-
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 $3.5 million in anticipation of using it...
-
Khairul has been working with Tun Hamid Energy Bhd since 1 February 2009 as a Human Resource Executive. Beginning 1 January 2014, he was promoted as Human Resource Manager. Details of his...
-
Comparative figures for Polaris and Arctic Cat follow. Required 1. Compute inventory turnover for each company for the most recent two years shown. 2. Compute days sales in inventory for each company...
-
Prove Theorem 5.5.13; that is, show that a. Set e = |x - | and show that if x > , then P(Xn x) > P(|Xn - | ). Deduce the => implication. b. Use the fact that {x : |x - >} = {x : x - . } to deduce...
-
Assume that a RB Tire Store completed the following perpetual inventory transactions for a line of tires. Requirements 1. Compute cost of goods sold and gross profit under FIFO. 2. Compute cost of...
-
The following information is available for Callaway Golf Company for the years 2008 and 2007. (Dollars are in thousands, except share information.) There were 73,139,000 shares outstanding at the end...
-
The audiology department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data, are as follows: Service Basic Examination...
-
In cell C11, construct a formula to calculate the annual projected street maintenance costs for the year 2025 after the projected increase of 5% is applied. Use absolute cell references as necessary....
-
Bryan and Lily, both aged 35, are married for all of 2023. They also have one child, Andrew, aged 13 for whom they provide the full support. During the year they report the following information...
-
In the early 20th century, anthropologist Clarke Wissler argued that the oldest cultural traits were those that had diffused most widely from their points of origin. What's wrong with this idea? What...
-
How does strategic management relate to business success?
-
What cultural changes led to the emergence of management as the fourth factor of production? What are the other three factors of production?
-
Because everyone's life experiences are different, each person has a different experience of their own culture. How can we reconcile the shared nature of culture with our different experiences of it?...
-
Discuss how management may be learned in a class setting.
-
A man does 4,365 J of work in the process of pushing his 2.80 x 10 kg truck from rest to a speed of v, over a distance of 25.0 m. Neglecting friction between truck and road, determine the following....
-
Explain the circumstances that could result in a long-term bank loan being shown in a statement of financial position as a current liability.
-
Chevelle, Inc., has sales of $39,500, costs of $18,400, depreciation expense of $1,900, and interest expense of $1,400. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
-
Titan Mining Corporation has 8.5 million shares of common stock outstanding, 250,000 shares of 5 percent preferred stock outstanding, and 135,000 7.5 percent semiannual bonds outstanding, par value...
-
Solar Engines manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 125 units have been made by customers requesting credit. The variable cost is $11,400...
-
Why is the thermodynamic process also called cyclic process? Explain with suitable example.
-
A mercury manometer reads \(40 \mathrm{~cm}\) at \(30^{\circ} \mathrm{C}\) and \(1 \mathrm{~atm}\). Determine the absolute pressure, given that \(ho_{\mathrm{Hg}}=14.02 \mathrm{~g} /...
-
Define isothermal, isochoric and isobaric processes with suitable examples.
Study smarter with the SolutionInn App