Question
PEPCo. is in the process of evaluating a new manufacturing location. The company purchased land three years ago for $1.6 million for future repair site
PEPCo. is in the process of evaluating a new manufacturing location. The company purchased land three years ago for $1.6 million for future repair site consideration and the land has a market value is $1.3 million. The building and equipment will cost $3.25 million and engineering and site preparation cost will be $.3 million. The company also incurred a cost of $.2 million for a project feasibility study two years ago. What is the proper cash flow amount to use as the initial investment in evaluating the project?
Group of answer choices $5.35 million $5.05 million $5.15 million $4.85 million
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