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A company is evaluating a new project that requires building a manufacturing facility. This company currently owns a tract of land bought 5 years ago
A company is evaluating a new project that requires building a manufacturing facility. This company currently owns a tract of land bought 5 years ago at a price of $250,000; fortunately the land is located near the interstate and will be used to build the new plant. The land recently appraised at $650,000 and requires an investment of $100,000 to make it suitable for building. The plant itself will cost and additional $4,500,000 to build and be ready for production. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
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