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1 Point Tow Bar Ltd currently produces trailers and is considering expanding its operations to include caravans. The company owns land beside its current
1 Point Tow Bar Ltd currently produces trailers and is considering expanding its operations to include caravans. The company owns land beside its current manufacturing facility that could be used for the expansion. The company bought this land 2 years ago at a cost of 250,000. At the time of purchase, the company paid 50,000 to level out the land so that it would be suitable for future use. Today, the land is valued at 295,000. The company currently has some unused equipment that it currently owns which cost 70,000 currently valued at 38,000. This equipment could be used for producing trailers if 12,000 is spent on equipment modifications. Additional equipment costing 490,000 will also be required. What is the amount of the relevant cash flow for the investment amount in evaluating this expansion project? O 502,000 O-785,000 -823,000 O -835,000 O-872,000
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