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excel answer only Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company
excel answer only
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park 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 $16.7 million to build, and the site requires $850,000 worth of grading before it is suitable for constru on. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? 4 5 6 7 Purchase price Current value Cost to build Grading costs $ $ $ $ 3,500,000 3,900,000 16,700,000 850,000 8 9 10 11 12 Complete the following analysis. Do not hard code values in your calculations. Enter a "O" for any cost that should not be included. 13 14 15 Current value Cost to build Sheet1 Purchase price Current value Cost to build Grading costs $ 3,500,000 $ 3,900,000 $ 16,700,000 $ 850,000 Complete the following analysis. Do not hard code values in your calculations. Enter a "0" for any cost that should not be included. Current value Cost to build Grading costs Total cost Step by Step Solution
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