Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN: 9780470458365
Author: Erwin Kreyszig
Publisher: Wiley, John & Sons, Incorporated
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Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $2.8 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 $3.2 million. The company wants to build its new manufacturing plant on this land; the plant will cost $14.3 million to build, and the site requires $825,000 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?
Input area:            
             
Purchase price $2,800,000           
Appraised value $3,200,000           
Cost to build $14,300,000           
Grading costs $825,000           
             
(Use cells A6 to B9 from the given information to complete this question. Enter a "0" for any cost that should not be included.)
             
Output area:            
             
Purchase price            
Appraised value            
Cost to build            
Grading costs            
Total initial cost            
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