Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. parker & stone, inc., is looking at setting up

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park...

60.1K

Verified Solution

Question

Finance

Parker & Stone, Inc., is looking at setting up a newmanufacturing plant in South Park to produce garden tools. Thecompany bought some land six years ago for $5.5 million inanticipation of using it as a warehouse and distribution site, butthe company has since decided to rent these facilities from acompetitor instead. If the land were sold today, the company wouldnet $5.8 million. The company wants to build its new manufacturingplant on this land; the plant will cost $13 million to build, andthe site requires $820,000 worth of grading before it is suitablefor construction. What is the proper cash flow amount to use as theinitial 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$   

Answer & Explanation Solved by verified expert
3.7 Ratings (419 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

A 2010 Pew Research poll asked 1,306 Americans \"From what you've read and heard, is there...

Medical Sciences
1.2K views

4. Describe the genetics of Duchenne muscular dystrophy. 5. CRISPR is a technology that we can...

Biology
1.2K views

For the discussion activity, state two prevention approaches (policy, employer, community programs, health plans, etc.) from...

Accounting
1.2K views

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018...

Basic Math
1.2K views

Find numbers C1 C2 C3 such that C1 C C3 1 1 0 1 C1...

Basic Math
1.2K views

Multiple Choice To plan your time for a research project it is best to 1...

Basic Math
1.2K views

The graph to the right is the uniform probability density function for a friend who...

Statistics
1.2K views

Question 4 Circulation x1000 American newspaper circulation enjoyed continuous growth until the 1970 s where...

Accounting
1.2K views

What are freight forwarders? How do they function? What services do they perform

Accounting
1.2K views

Prepare adjusting journal entries for the dog training business for the period ended December 31....

Accounting
1.2K views

Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on...

Accounting
1.2K views

Tax Dilemma The income of any person, including a company, accruing in or derived from...