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 construction What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? 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. 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 Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. If the tax rate is 21 percent, what is the OCF for this project? Asset investment Estimated annual sales Costs Tax rate Project and asset life $ $ $ 2,900,000 2,190,000 815,000 21% 3 Complete the following analysis. Do not hard code values in your calculations. Sales Costs Depreciation EBT Taxes Not incomo Complete the following analysis. Do not hard code values in your calculations. Sales Costs Depreciation EBT Taxes Net income OCF