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AVprozaik [17]
4 years ago
12

Suppose that a firm has purchased some land for $1,250,000 a year ago to develop a new outlet, and the land now would sell $2,00

0,000. They are now evaluating the outlet and that it would cost them $12,000,000 to build the outlet, $150,000 to purchase needed equipment, $15,000 to transport and install the equipment, and $500,000 in inventory ($250,000 coming from one of their warehouses). What would you estimate its initial investment outlay to be?
Business
1 answer:
scoray [572]4 years ago
8 0

Answer:

$13,915,000

Explanation:

Land-cost              $1,250,000

Construction cost $12,000,000

Equipment cost(150,000+15,000) $165,000

Inventory                          $500,000

Total initial investment outlay $13,915,000

Please note that fair value of land is irrelevant as the land was purchased for the outlet being set up and not for any other project.

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3 years ago
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klemol [59]

Answer:

The answer is given below;

Explanation:

Days sales in inventory-2017= Average Inventory/Cost of goods sold*365

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Days sales inventory 2016= (85,000+56,000)/2/(385,686)*365

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Renaldo Cross Company views share buybacks as treasury stock. Renaldo repurchased shares and then later sold the shares at more
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Answer: a) Option A

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