Parker amp stone inc is looking at setting up a new, Ask an Expert

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Parker & stone, inc., is looking at setting up a new manufacturing plant in south park to produce garden tools. the company bought some land 8 years ago for $6 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 $9.4 million. 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 $1,410,000 worth of grading before it is suitable for construction.

required :

What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92170862

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