What is the proper cash flow amount
Course:- Finance Basics
Reference No.:- EM13280934

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Finance Basics

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 $5.1 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 $5.4 million. The company wants to build its new manufacturing plant on this land; the plant will cost $12.6 million to build, and the site requires $780,000 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? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
Sam wants to build a medium-sized office building (15 stories). There are two possible sites available; they are equal in terms of location, buildability, etc. The only signif
Waterworks has a dividend yield of 9%. If its dividend is expected to grow at a constant rate of 6%, what must be the expected rate of return on the company's stock?
It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $0.81 million, its average tax rate is 30%, and its profit margin is 6%. Wha
Based on this plan, what will Ramons total compensation be if his performance results are a. 30,000 room-nights, 5 percent saved, $3.00 rate increase?b. 25,000 room-nights, 3
Compile a ratio analysis of the top competitors in the industry using the company's financial statements. You should limit the number of companies you are researching to bet
Select a stock of interest (NOT Dicks Sporting Goods) and study it by going to its equity menu and accessing the following sub-screens (to select a company, type in the ticker
What would be the amount of your gain or loss had the treasurer originally purchased a bond with a 4-year rather than a 20-year maturity? (Assume all characteristics of the
Describe why a manager needs to understand the characteristics and importance of financial markets including risk and efficiency. Describe why cash flow is more important tha