What value should pk assign as the initial cost of project

Assignment Help Finance Basics

Reference no: EM13272560

PK Properties purchased a warehouse for $1.6 million ten years ago. Four years ago, the company repaired the roof at a cost of $220,000. Last year, the electrical wiring and lights were upgraded at a cost of $134,000. The annual taxes on the property are $28,500 and the rental income is $170,000. The warehouse has a current book value of $800,000 and a market value of $1.95 million. The property is totally debt-free. PK is considering converting the building into a discount retailer of bulk goods. The cost of the conversion would be $95,000 and could be started next month when the existing lease on the building expires. When analyzing the bulk goods option, what value should PK assign as the initial cost of the project?

Reference no: EM13272560

Questions Cloud

What frequency is monitored by the leading ship : Two ships are moving along a line due east (see figure below). The trailing vessel has a speed relative to a land-based observation point of v1 = 59.5 km/h, What frequency is monitored by the leading ship

What is the instrinic value and time value : If an investor buys 1ABC Mar 50 put at 4 when the market is 70. What's the instrinic value and time value associated with this contract?

Procurement plan for hospital development : The Proposal to ensure the application of the concepts and techniques learnt in this module - In the Outline, you should also show clear boundaries between the following sections of the Final Project

What was the speed of the car before impact : An automobile having a mass of 1,000 kg is driven into a brick wall in a safety test. The bumper behaves like a spring with constant 5.55 106 N/m, What was the speed of the car before impact

What value should pk assign as the initial cost of project : When analyzing the bulk goods option, what value should PK assign as the initial cost of the project?

What current is needed in the coil to produce flux of 200 wb : A closed solenoid has a 100 turn coil. That core has a reluctance of 0.8(A-T/Wb). What current is needed in the coil to produce a flux of 200 Wb

What bid price per carton should you submit : Assume that your tax rate is 34% and you require a 10% return on your investment. What bid price per carton should you submit?

Use the 0.05 significance level : Does the data suggest that it takes longer for the Youngsville Department to respond? Use the 0.05 significance level. State your work in the 5-step hypothesis test.

Estimate the minimum allowed kinetic energy of the electron : In a crystal an electron is confined to a cubical region of length 0.5nm on a side. estimate the minimum allowed KE of the electron

User Account

All Pages