What is the proper cash flow amount

Assignment Help Financial Management

Reference no: EM131321435

Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8.2 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 $11 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $22.2 million to build, and the site requires $970,000 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?

Reference no: EM131321435

Questions Cloud

Derive an upper bound on the value of a put option : Derive the forward price of the stock for delivery in one year - what is the value of an otherwise identical European put option?

Rewrite returns expression in which cond has been replaced : Write the function rewrite (x), x is an s-expr. If x is not a "legal" cond, rewrite returns nil. Otherwise, rewrite returns an expression in which each cond has been replaced by an equivalent sequence of nested if- then.

What is projected net income : A proposed new investment has projected sales of $830,000. Variable costs are 55 percent of sales, and fixed costs are $187,200; depreciation is $93,500. Assume a tax rate of 40 percent. What is the projected net income?

Decision-making technique : Incremental analysis is a problem-solving approach that utilizes accounting information to assist in decision making. It is applied when more than one alternative is present.

What is the proper cash flow amount : Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8.2 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent fac..

Renewable energy strategies for sustainable development : Prepare a list of three academic sources relevant to your future field of study and linked to your research project (i.e. UEEC seminar presentation)

A ladder program diagram using the slc 500 addressing scheme : You are an electrical engineer for Packaging, Inc. Your boss has assigned you a project to program a pick-and-place system using a robot to remove cases from a conveyor to a pallet.

Putting the money into a short-term investment account : Donna plans to save for a vacation to Costa Rica in 18 months. She will be putting the money into a short-term investment account earning 4% annually. How much will Donna have to put away at the beginning of each month if the total package cost for t..

How easy or difficult ms project seems to be from a user : Give your opinion on how easy or difficult MS Project seems to be from a user experience standpoint.Suggest at least two (2) challenges you foresee in using MS Project in this course.Describe why it is important to use a tool like MS Project instead..

User Account

All Pages