Cash flow amount to use initial investment in fixed assets

Assignment Help Financial Management

Reference no: EM131501018

Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7.4 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $10.2 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $21.4 million to build, and the site requires $890,000 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, e.g., 1, 234, 567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Reference no: EM131501018

Questions Cloud

What type of content you would recommend for your brand : Starting with your company's website, begin by identifying all of the social media sites and company blogs that you can.

What is the amount to use as the annual sales figure : What is the amount to use as the annual sales figure when evaluating this project?

What is the ytm to maturity to the bondholders : What is the YTM to maturity to the bondholders in December of 2005?

Review and critically discuss problem of deindustrialization : Review and critically discuss the problem of "deindustrialization." Your answer should be based on a review of the reading byChristopher Swope, "Smart Decline."

Cash flow amount to use initial investment in fixed assets : What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Construct a stem-and-leaf display : Construct a stem-and-leaf display for the data, using a leaf unit of 1.

Predictive and prescriptive studies : What are the differences between predictive and prescriptive studies in nursing research.

Appropriate discount rate for healthy bottled water project : Determine the current weighted average cost of capital for CWC. Determine the appropriate discount rate for the healthy bottled water project.

Find the probability that the seniors owe : Find the probability that the seniors owe between $2500 and $3821.

User Account

All Pages