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Tresset [83]
3 years ago
12

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 $4 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 $4.3 million. the company wants to build its new manufacturing plant on this land; the plant will cost $11.5 million to build, and the site requires $670,000 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? (enter your answer in dollars, not millions of dollars,
e.g. 1,234,567.)
Business
1 answer:
Setler [38]3 years ago
4 0

The initial investment is the total amount spent or the amount of cash outflow.

The initial investment here is -

Proper cash flow amount = Cost of land (present cost of land) + Cost of Plant + Cost of Grading

Proper cash flow amount = $ 4,300,000 + $ 11,500,000 + $ 670,000

Proper cash flow amount = $ 16,470,000

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algol [13]

Answer:

b. $120,100.

Explanation:

The movements in the Inventories account over a period is as a result of goods manufactured (which results in an increase in the account balance) and goods sold ( which results in a decrease in inventory).

As such,

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7 0
3 years ago
Motorcycle Manufacturers, Inc., projected sales of 51,500 machines for the year. The estimated January 1 inventory is 6,000 unit
ioda

Answer:

Budgeted Production = 52910 units

Explanation:

The budgeted production should be enough to meet the yearly sales requirement plus provide enough inventory at the year end to cover for the required level of desired inventory. The opening inventory at the start of the year should be deducted to calculate the budgeted production.

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5 0
3 years ago
You are planning for your son's college education to begin five years from today. You estimate the yearly tuition, books, and li
EleoNora [17]

Answer:

The correct answer is B.

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PV= 20,000/ (1.08^5)

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4 0
2 years ago
Javier is the sole proprietor of a golf shop. Because he is a sole proprietor, any profit Javier’s business earn is ____________
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Answer:

The correct answer is option B.

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3 years ago
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