CourseLover

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    Devry University
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Category > Accounting Posted 09 Dec 2017 My Price 10.00

proper cash flow amount to use as the initial investment

XYZ Co., is looking at setting up a new manufacturing plant to produce burlap apparel. The company bought some land six years ago for $30,000 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. The land was appraised last week for $6,000. The company wants to build its new manufacturing plant on this land; the plant will cost $70,000 to build, and the site requires $3,000 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?

 

What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

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CourseLover
(12)
Status NEW Posted 09 Dec 2017 08:12 AM My Price 10.00

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