Parker & Stone, Incorporated, is looking at setting up a new manufacturing plant in South

Park to produce garden tools. The company bought some land $4$ years ago for $$8$ 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 $$9\mathrm{.}6$ million. The company wants to build its new

manufacturing plant on this land; the plant will cost $$13\mathrm{.}2$ million to build, and the site

requires $$1,248,000$ 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?

Multiple Choice

$$24,048,000$

$$25,250,400$

$$21,552,000$ $$22,800,000$

$$21,486,080$