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Plz only respond if you can do all parts please Parker & Stone, Incorporated, is looking at setting up a new manufacturing plant in South
Plz only respond if you can do all parts please
Parker \& Stone, Incorporated, is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 9 years ago for $6 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 $9.6 million. The company wants to build its new manufacturing plant on this land; the plant will cost $15.2 million to build, and the site requires $1,056,000 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 $21,221,760 $23,744,000 $25,856,000 $27,148,800 $24,800,000 Quad Enterprises is considering a new 4-year expansion project that requires an initial fixed asset investment of $5.67 million. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will be worthless. The project is estimated to generate $5,040,000 in annual sales, with costs of $2,016,000. If the tax rate is 22 percent, what is the OCF for this project? Multiple Choice $2,804,099 $2,670,570 $3,024,000 $1,253,070 $2,537,042 An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $10,980,000 and will be sold for $2,440,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? Multiple Choice $2,315,189 $1,878,800 $2,564,811 $2,430,949 $2,199,430Step by Step Solution
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