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MakcuM [25]
3 years ago
8

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

.6 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 $11.4 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $22.6 million to build, and the site requires $1,010,000 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 round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)
Business
1 answer:
Alisiya [41]3 years ago
4 0

Answer:

$35,010,000

Explanation:

Calculation for the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Cash flow = $11.4 million + $22.6 million + $1,010,000

Cash flow = $35,010,000

Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,010,000

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Answer:

The correct answer is the option D: Total project costs are the lowest.

Explanation:

To begin with, when it comes to the business field and the management area, the "project duration" refers basically to the characteristic that the project management has regarding the duration of it, very commonly expressed in terms of working units like hours, days, weeks, months or years for example. Moreover, there are three major types of project duration that are: "Estimated Project Duration", "Actual Project Duration" and "Remaining Project Duration". And to end up, the point where the duration of the project is opmital is when the total project costs are the lowest of all.

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Suppose VS's stock price is currently $20. A six-month call option on VS's stock with an exercise price of $15 has a value of $7
lutik1710 [3]

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Explanation:

To solve this, we would use the put call parity. We then calculate the value of the out which will be:

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Answer:

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