Manufacturing plant in south park to produce garden tools

Assignment Help Financial Management

Reference no: EM132012428

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 4 years ago for $6225000 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 $3384000. An engineer was hired to study the land at a cost of $966000, and her conclusion was that the land can support the new manufacturing facility. The company wants to build its new manufacturing plant on this land; the plant will cost $5697000 million to build, and the site requires $807000 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?

Reference no: EM132012428

Questions Cloud

Probability of winning the powerball jackpot knowing : Determine the probability of winning the PowerBall Jackpot knowing that 5 white balls are drawn from a drum of 59 balls, and 1 red ball is drawn from a drum

What would be the effect on the company income : Prepare a schedule that shows contribution margin, contribution to indirect expenses, and net income of the Sharks Division of Hockey, Inc

What is the theme of the poem : Who is the speaker? What is the "point of view" or perspective of the speaker? The perspective might be social, intellectual, political, or even physical.

Game with a lesser chance of winning a large prize amount : Would you be more likely to play a game with a greater chance of winning a small prize amount or a game with a lesser chance of winning a large prize amount?

Manufacturing plant in south park to produce garden tools : Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools.

How ethics applies to business communication : How ethics applies to business communication. How to plan, while incorporating ethics, as a part of the three-step writing process.

Prepare the adjusting entry at march : Princess Company publishes a monthly fashion magazine, Tiara. Prepare the adjusting entry at March 31, 2015, to record sales revenue

The compensation package on the date the contract is signed : Determine the total value of the compensation package on the date the contract is signed?

Find the cartesian equation for the plane p : Find the cartesian equation for the plane P, containing (2, -1, 3), that is orthogonal to L.

User Account

All Pages