What is proper cash flow amount to use as initial investment

Assignment Help Financial Management

Reference no: EM131981387

Your firm 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 $4.7 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 $4.8 million. The company wants to build its new manufacturing plant on this land; the plant will cost $10.9 million to build, and the site requires $738885 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? (Round answer to 0 decimal places. Do not round intermediate calculations)

Reference no: EM131981387

Questions Cloud

Are you ready to present the policies for compliance plans : Are you ready to present the policies for your two compliance plans in a way that all employees will understand at a large medical facility.

Characteristic polynomial and its roots : Solve the recurrence equation An = An-1+4An-2 +2An-3, for A0 = 1, A1 = 1. A2 = 5 for n >= 3 Follow the steps below.

Describe the type of cost accumulation system : When companies accumulate costs, they generally use either a job-order or a process costing system.

Explain why are union data structures not type safe : In a programming language, explain why are union data structures not type safe?

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

Create a process flow diagram to illustrate the processes : Create a process flow diagram to illustrate the process(es) for determining if / when notification of the incident should be relayed to upper management.

Determine whether first normal form : Determine whether first normal form (1NF), second normal form (2NF), or third normal form (3NF) should be the goal when a DBA designs a database.

Point between resistors b and c : If resistors A, B, C, and D are connected one after the other (which means they are in series), and then one end of resistor E is connected to the point

Calculate the firms average tax rate : Using the US Corporate Tax Schedule from the textbook (and lecture slides), calculate the firms average tax rate.

User Account

All Pages