1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergij07 [2.7K]
3 years ago
10

Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7

.3 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 $10.1 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $21.3 million to build, and the site requires $880,000 worth of grading before it is suitable for construction.
Required: What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? (Do not include the dollar sign ($). Enter your answer in dollars (e.g., 1,234,567), not millions of dollars.)
Business
1 answer:
mojhsa [17]3 years ago
6 0

Answer:

The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $32,280,000.

Explanation:

Proper year zero cash flow to use in evaluating this project = After-tax value of the land + Cost of manufacturing new plant + Grading Expenses

= $10,100,000 + $21,300,000 + $880,000

= $32,280,000

Therefore, The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $32,280,000.

NOTE :

- The after-tax value of the land of $10,100,000 should be considered since it is an opportunity cost of capital if the land is used rather than sold.

- The cash outlay of $21,300,000 for the plant cost and the $880,000 for the grading costs are the part of the initial investment in year 0.

You might be interested in
Groups are select one:
sergij07 [2.7K]
This is a logical question m8 the answers A
5 0
3 years ago
Suppose there an increase in production cost decreases the supply of wheat, such that less wheat is supplied at each price level
pickupchik [31]
Increases. hope this helps
8 0
3 years ago
To increase the money​ supply, the FOMC directs the trading​ desk, located at the Federal Reserve Bank of New​ York, to A. sell
andrezito [222]

Answer:

. D. print U.S. Treasury securities and distribute them to banks

Explanation:

4 0
2 years ago
Greg, a project manager in your company, is falling behind on the project schedule. He has elected to crash the project. What is
Vinil7 [7]

Answer:

c) Adding additional project resources to the project

Explanation:

Falling behind schedule is something that needs to be avoided or dealt with promptly and systematically

Crashing is the technique to use when fast tracking has not saved enough time on the project schedule. You use crashing to save resources to the project for the least cost possible. Anyhow, crashing is expensive because more resources are added to the project.

References:

Dave. “A Step-by-Step Process of Dealing with a Project That Is Falling behind Schedule.” MyClientSpot Blog, 10 Sept. 2015

Monnappa, Avantika. “Project Management Learning Series: Fast Tracking Versus Crashing.” Simplilearn.com, Simplilearn, 27 Sept. 2019,

5 0
2 years ago
Private placements can be advantageous, compared to public issue, because: I. Private placements are cheaper to market than publ
Maurinko [17]

Answer:

Private placements

Explanation:

private placements are cheaper to market than public issues

8 0
3 years ago
Other questions:
  • An agent of a broker-dealer "A" has been terminated and is associating with broker-dealer "B." The terminated agent agrees to tu
    6·1 answer
  • Mark owns a 24-hour convenience store. Lately he has noticed that the liquor inventory purchases have gone up by huge amounts, a
    12·1 answer
  • The following are the events and transactions related with a township for the year 2015. You are required to prepare necessary e
    7·1 answer
  • Last year, Flash Company sold 15,000 units of its only product. If sales decreased by 17% in the current year, how will total va
    14·1 answer
  • Where are you most likely to encounter lead on a construction site?
    5·1 answer
  • Explain the concept of a Pereto Chart - provide an example - explain how the concept of the Pereto Chart might be used in making
    9·1 answer
  • A contact center manager is looking for ways to overall cost per case.
    11·1 answer
  • Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables.
    8·1 answer
  • To temporarily offset a depreciation in the dollar's exchange value, the Federal Reserve could ____ the U.S. money supply which
    5·1 answer
  • In a period of steep increases in interest rates, which issuer is most likely to be negatively affected
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!