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FINANCE LEMS Relevant Cash Flows [LO1] Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden
FINANCE LEMS Relevant Cash Flows [LO1] 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 cost $16.7 million to build, and the site requires $850,000 worth of grading is suitable for construction. What is the proper cash flow amount to use as investment in fixed assets when evaluating this project? Why? Relevant Cash Flows (L01] Winnehastel Co unt to use as the initial Der er min
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