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Save Answer Fyz Confectionary currently produces candy bars and is planning to expand its product line to include snack foods. The company already owns a
Save Answer Fyz Confectionary currently produces candy bars and is planning to expand its product line to include snack foods. The company already owns a manufacturing plant suitable for the new project, which costs them $355,000 to build eight years ago. The current book value of the plant is $220,000; however, a commercial real estate agent has informed the company that an outside buyer is interested in purchasing this plant would be willing to pay $415,000 for it. It is now considering using the plant for the proposed project. However, the company needs to do some maintenance work on the plant which costs $114,000 before it can be used in the new project. In addition, there will be $40,800 spent on promoting the new product line. New equipment to manufacture the snack foods will cost $332,000 and the company has to pay $28,000 to have it delivered and installed. Interest expense associated with financing the purchase of the new equipment will be $16,400 per year. Required: MATCH THE FOLLOWING AMOUNT OF CASH FLOWS WITH ITS RESPECTIVE TYPE Sunk cost $355,000 Book value $120,000 c Opportunity cost $415,000 D. Capital investment - $114,000 Financing cost Networking capital $332,000 Operating cash flows. A B. E - $40.800 G $28.000 $16,400 Depreciation
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