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Parker & Stone, Incorporated, is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land

Parker & Stone, Incorporated, 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 $8 million in anticipation of using it as a
warehouse and distribution site, but the company has since decided to rent facilities elsewhere. If the land
were sold today, the company would net $10.8 million. The company now wants to build its new
manufacturing plant on this land; the plant will cost $22 million to build, and the site requires $950,000 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?
Note: Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to
the nearest whole number, e.g.,1,234,567.
Cash flow
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