Use as the initial investment in fixed assets

Assignment Help Financial Management

Reference no: EM131319750

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 $4.5 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 $4.8 million. The company wants to build its new manufacturing plant on this land; the plant will cost $12 million to build, and the site requires $720,000 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?

Reference no: EM131319750

Questions Cloud

After-tax rate of return : Jonah has the choice of paying Rita $24,000 today or $96,000 in 10 years. Assume Jonah can earn a 12 percent after-tax rate of return. Which should he choose? Assume Rafael can earn an 8 percent after-tax rate of return. Would he prefer $2,700 today ..

Sketch the radiation pattern in the cross-sectional plane : A Hertzian dipole is situated parallel to a corner reflector, which is an arrangement of two plane, perfect conductors at right angles to each other, as shown by the crosssectional view in Figure 9.1

Serving time for drug dealing : According to Harper's Index, 55% of all federal inmates are serving time for drug dealing. A random sample of 15 federal inmates is selected. (a) What is the probability that 9 or more are serving time for drug dealing? (Use 3 decimal places.)

Create a query that will select records for customers : Create a query that will select customers who had less than 10 pounds of produce picked for Grapes, Watermelons, or Strawberries. The query should include the Service Date, Customer Number, Business Name, Street, City, State, Zip, and the Weight ..

Use as the initial investment in fixed assets : 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 $4.5 million in anticipation of using it as a warehouse and distribution site, but the comp..

Overview of the human resources technology used at costco : Provide an overview of the human resources technology used at Costco. Describe what assessment methods they use. Your conclusion on the importance of HR technology

Mean price for the sample : During a certain week the mean price of gas was $2.709 per gallon. A random sample of 35 gas stations is drawn from this population. What is the probability that the mean price for the sample was $2.697 and $2.716 that week? Assume o =$0.046

Presenting research using polynomial regression : Locate one article presenting research using polynomial regression. Your task now is to critique the appropriateness, utility, alternatives, strengths, and weaknesses of the use of statistics to support the hypotheses of the study.

Find the reaction forces between the spheres : Two identical rollers,each of weight 90N are supported by an inclined plane and a vertical wall as shown in fig., determine the reaction at the points of supports A,B,C assuming all the surfaces to be smooth. Also find the reaction forces between ..

User Account

All Pages