What is the proper cash flow amount

Assignment Help Financial Accounting
Reference no: EM132788164

Question - ABC Inc is looking to set up a new manufacturing plant to manufacture widgets. The plant will be built on a piece of vacant land the company bought for $1 million, 8 years ago. The company has not used the land in the past 8 years. Today the land is worth $3 million. The company will build its manufacturing plant on the vacant land. The plant will cost $10.5 million to build. The site, the vacant land, requires $1.5 million of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment when evaluating this project?

A) $15.0 million

B) $10.5 million

C) $11.5 million

D) $13.0 million

E) $13.5 million

Reference no: EM132788164

Questions Cloud

How much is the gain or loss for the equipment sale : Adelphi sold the machine on January 1, 2021 for $29,000. How much is the gain or (loss) for the equipment sale entry made on January 1, 2021.
What is the present value of payments : What is the present value of these payments? Round your answer to the nearest whole dollar.
What are the belief systems of your site : For this assignment, choose an archaeological site that you will analyze for your Final Research Paper and submit it, as well as a tentative thesis statement.
Prepare the journal entries to record depreciation for year : Prepare the journal entries to record the depreciation for year ended December 31, 2021. On July 1, 2018, Chinook Incorporated purchased a piece of equipment
What is the proper cash flow amount : The site, the vacant land, requires $1.5 million of grading before it is suitable for construction. What is the proper cash flow amount
What is the npv of project : The risk-free rate is 3.8 percent and the market risk premium is 7 percent. The tax rate is 21 percent. What is the NPV of this project?
How matrix and preservation help archaeologists : Discuss how matrix, provenance /provenience, and preservation help archaeologists understand cultural evolution. Provide at least 3 examples.
How much should the asset be reported on december : At how much should the asset be reported on December 31, 2019 when the entity decided to place back the non-current asset into operations?
Define the view of human behavior and society : This discussion focuses on important theories that help to explain culture change as well as on the methods and techniques archaeologists use in (and out of).

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd