What is amount of initial cash flow for expansion project

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Reference no: EM13939855

High Breeze currently produces boat sails and is considering expanding into awnings for homes and travel trailers. The company owns land that could be used for the expansion. This land was purchased five at a cost of $319,000 and is valued today at $395,000. The company has some unused equipment that it currently owns valued at $38,000. This equipment could be used for producing awnings if $12,000 is spent for equipment modifications. Other equipment costing $138,000 will also be required. What is the amount of the initial cash flow for this expansion project?

A -$571,000

B -$469,000

C -$583,000

D -$507,000

E -$545,000

Reference no: EM13939855

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