subject
Business, 08.11.2019 01:31 kyandrewilliams1

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 $5.5 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 $5.8 million. the company wants to build its new manufacturing plant on this land; the plant will cost $13 million to build, and the site requires $820,000 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.)

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 11:30
Which of the following statements about cash basis accounting is true? a. it is more complicated than accrual basis accounting. b. the irs allows all types of corporations to use it. c. it follows gaap standards. d. it ensures the company always knows how much cash flow it has.
Answers: 2
question
Business, 22.06.2019 18:50
)a business incurs the following costs per unit: labor $125/unit, materials $45/unit, and rent $250,000/month. if the firm produces 1,000,000 units a month, calculate the following: a. total variable costs b. total fixed costs c. total costs
Answers: 1
question
Business, 22.06.2019 19:30
Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%
Answers: 3
question
Business, 22.06.2019 23:10
Mbo works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. the hierarchy ends in individual objectives set by each employee. this is an example of mbo working as objectives through the organization.
Answers: 1
You know the right answer?
Parker & stone, inc., is looking at setting up a new manufacturing plant in south park to produ...
Questions
question
Mathematics, 11.07.2019 14:30
Questions on the website: 13722363