cubown Cash Flow and Financing Parker & Stone, Inc. is looking at setting up a new manufacturing plant in South Park to produce gardon tools. The company bought some land sex years ago for $35 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 not $39 million. The company wants to build its new manufacturing plant on this land, the plant will cost $16.7 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 investment in found assets who evaluatin this project? 5 Purchase price Current value Cost to build Grading costs $ 3.500.000 3.000.000 16.700.000 250.000 Complete the following analysis. Do not hard code values in your calculations Enter a "Ofor any cost that should not be included Current value Cost to build Sheet 3/3 Prev 110 11 Next > DOLL 3 1 3 $ 5 T W . C R ES T ON 79 D[F G H J CV) By NT M Consider the following simplified APT model 5 po Factor Martat Interest rate Vield spread Expected Risk Premium (N) 6.1 -0.9 4.7 07:11 market Stock P Factor Risk Exposures Interest Rate Yield Spread (2) (6) -0.5 0 0.2 Dances 1.1 1.1 p Calculate the expected return for each of the stocks shown in the table above. Assumere -36% (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places) Expectes eum P Expected on 2 Expected return P3