Read the following case and then answer the questions presented.

The company Nueva Luna, S.A. de C.V. wants to expand its industrial building in order to expand its product line. The Production Manager suggests the purchase of a building located in the industrial area, whose surface is twice the size of the one they currently occupy. To make the decision, the general manager asks the Administration and Finance area to determine the initial cash flow amount of the project, considering the following information: 

 

Financial information	USD
Quotation of the new location	$5,450,000.00
Working capital.	$860,500.00
Adaptation expenses of the new location.	$455,500.00
Original amount of the previous location	$2,800,500.00
Sales value of the previous premises	$1,200,400.00
Accumulated depreciation of the previous location	$2,240,400.00

 

 

What is the amount to be requested in the financing, considering the sale of the previous location and a tax rate of 30%?

 

Select one:

a. 

$5,733,630.00 MXN.

b. 

$5,565,600.00 MXN.

c. 

$6,766,000.00 MXN.

 

 

What is the initial cash flow to be recovered via depreciation?

Select one:

a. 

$5,565,600.00 MXN.

b. 

$5,733,630.00 MXN.

c. 

$6,766,000.00 MXN.