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1. Relevant Cash Flows (L01) White Oak Garden Inc. is looking at setting up a new manufacturing plant in London, Ontario, to produce garden tools.
1. Relevant Cash Flows (L01) White Oak Garden Inc. is looking at setting up a new manufacturing plant in London, Ontario, to produce garden tools. The company bought some land six years ago for $3.5 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 $3.9 million. The company wants to build its new manufacturing plant on this land; the plant will cost $16.72 million to build, and the site requires $850,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial instestment in fivadascate when evaluating this proiect Why
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