Relevant Cash Flows Cudgegong Manufacturing Ltd is considering setting up a new manufacturing plant in South Australia. The company bought some and six years ago for $9.3 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would sell for $129 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost S30 million to build, and the site requires S1 218 000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fised assets when evaluating this project? Why? LO 9.1 2. Relevant Cash Flows luck The company wants to introduce a new portable camper to fill out its product line; it hopes to sell27000 of these campers per year at $23 500 each. An independent consultant has detemined that if Duckmaloi introduces the new campers, it should boost the sales of its existing caravans by 3000 units per year, and reduce the sales of its kuxury caravans by 800 units per year. What is the amount to use as the annual sales figure when evaluating this project? Why? Lo 9.1 nk Capers cumently sells 3100 caravans per year alsuoocach, and 900 liury caravans per year 13400 cach