1 2 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 $2.8 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 $3.2 million. The company wants to build its new manufacturing plant on this land; the plant will cost $14.3 million to build, and the site requires $825,000 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? 4 Input area: 5 6 Purchase price 7 Appraised value 8 Cost to build $2,800,000 $3,200,000 9 Grading costs 10 $14,300,000 $825,000 11 (Use cells A6 to B9 from the given information to complete this question. Enter a "O" for any cost 12 that should not be included.) 13 14 Output area: 15 16 Purchase price 17 Appraised value 18 Cost to build 19 Grading costs 20 Total initial cost 21 22 23