
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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