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Parker & Stone, Inc., s looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land
Parker & Stone, Inc., s looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 9 years ago for $7 million in anticipation of using it as a warehouse and distribution site, but the company has since declded to rent these faclilities from a competitor instead. If the land were sold today, the company would net $10 million. The company wants to build lts new manufacturing plant on this land; the plant wll cost $13.2 million to bulld, and the site requires $1,4 worth of grading before it is suitable for construction. Required: What is the proper cash flow amount to use as the initial investment in fixed assets when project? evaluating this O $20,616.000 O $21800.000 O $24.600,000 O $25.830.oo0 O $23.200.o00 References eBook & Resources
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