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pantera1 [17]
3 years ago
12

Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8

.4 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 net $11.2 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $22.4 million to build, and the site requires $990,000 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?
Business
1 answer:
Zarrin [17]3 years ago
6 0

Answer:

$34,590,000

Explanation:

Kenny incorporation is looking at setting up a new manufacturing plant in South park

The company purchased some lands six years ago $8.4 million

The land will net $11.2 million if sold today

The plant will cost $22.4 million to build

The site requires $990,000 worth of grading before construction

Therefore the proper cash flow can be calculated as follows

= opportunity costs + costs + upgradation

= $11,200,000 + $22,400,000 + $990,000

= $34,590,000

Hence the proper cash flow is $34,590,000

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Use information from the Washington Post article Why We've Been Hugely Underestimating the Overfishing of the Oceans to determin
Anton [14]

Answer:

1. False. The peak of 86 MILLION occurred in the year of 1996 and not in 2001 as per the reports of food and agricultural organisation of UN.

2. True. The given statement is correct from the source.

3. False. As per the research conducted on the basis of catch reconstruction, the catches have been declining due top several reasons.        

4. The last statement is totally correct as verified by the source mentioned.

 

         

3 0
3 years ago
Finch Company began its operations on March 31 of the current year. Finch Co. has the following projected costs: April May June
sergeinik [125]

Answer:

The cash payments for Finch Company in the month of June is $185,600.

Explanation:

Cash payment : Cash payment is that payment which is deals only in cash or the payment is only paid in cash.

So,

To compute the cash payment for June month, the following things is need to be considered.

1. Manufacturing cost of April and May

All other cost like - insurance cost, property tax is not need to be considered because it is not related to may month.

So,

= 3÷4 of May month + 1÷4 of April month

= 3÷4 × $195,200 + 1÷4 × $156,800

= $146,400 + $39,200

= $185,600

Hence,  The cash payments for Finch Company in the month of June is $185,600.

3 0
3 years ago
Marble Construction estimates that its WACC is 10 percent ifequity comes from retained earnings. However, if the company issuesn
dedylja [7]

Answer:

Projects E,F and G should NOT be considered.

Optimal Capital  is $5,750,000

Explanation:

The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)

                                 Accept if        r>k

                                 Reject if         r<k

                                   Mayaccept if r = k

If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.

The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital).  Considering this projects E,F and G should NOT be considered.

And considering the sizes the Optimal Capital  is $5,750,000 (the addition of sizes of all projects)

8 0
3 years ago
Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales p
Brut [27]

Answer:

C. Scenario Analysis

Explanation:

Scenario Analysis is analysis of computing the Net Present Value by changing various variables, that is change in values of Sales, Variable Cost, Revenue, Cost of project and various other things. Basically it measures the Net Present Value with respect to various factors associated with calculating the net present value, as Jamie is calculating Net Present Value with different factors, that is in different scenarios, it is called Scenario Analysis.

8 0
3 years ago
Eric is an hr manager at communication connections. which task would he perform as a part of the human resource planning process
artcher [175]

Forecasting future human resource requirements for his company is a part of the human resource planning process.

Forecasting is the method of making predictions based totally on past and present statistics. Later those can be compared to what takes place. For example, an agency may estimate its sales within the next year, then examine it against the actual consequences. Prediction is similar, but the extra preferred time period.

Forecasting is a way that uses historic statistics as inputs to make informed estimates which can be predictive in determining the course of destiny traits. Businesses utilize forecasting to decide on a way to allocate their budgets or plan for expected expenses for an upcoming time frame.

There are 4 trendy steps in the Human Resource Planning process: identifying the modern supply of personnel, determining the future of the body of workers, balancing between labor supply and demand, and developing plans that help the employer's goals.

Learn more about Forecasting here brainly.com/question/23009258

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7 0
2 years ago
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