Question
Co. bought land six years ago for $6MM for another purpose. Current appraised value = $6.8MM. Co. now wants to build new plant here. Plant
Co. bought land six years ago for $6MM for another purpose.
Current appraised value = $6.8MM. Co. now wants to build new plant here. Plant will cost $10MM to build and site requires $500M of grading.
What is the proper cash flow amount to use for the initial investment?
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Understanding Financial Risk Management
Authors: Angelo Corelli
1st Edition
0415746183, 978-0415746182
