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please help me this problem and show me to do them. thanks Parker & Stone, Inc., is looking at setting up a new manufacturing plant
please help me this problem and show me to do them. thanks
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 $4.8 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 $5.1 million. The company wants to build its new manufacturing plant on this land, the plant will cost $12.3 million to build, and the site requires $750,000 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 (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Cash flow amount $ 75,002 Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.4 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 $1,684,000 in annual sales, with costs of $651,000. If the tax rate is 24 percent, what is the OCF for this project? (Do not round Intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) OCF Step by Step Solution
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