ustin's Manufacturing purchased a lot in Lake City ten years ago at a cost of $0.95 million. Toda that lot has a market value of $4.11 million. At the time of the purchase, the company spent $100,000 to grade the lot and another $20,000 to build a small garage on the lot to house additional equipment. The company now wants to build a new facility on the site. The building ce is estimated at $5 million. What amount should be used as the initial cash flow for this project? Enter two decimal places. Do not enter the word million or a dollar sign ($). For example, if you answer is $2.75 million, enter only 2.75.
ustin's Manufacturing purchased a lot in Lake City ten years ago at a cost of $0.95 million. Toda that lot has a market value of $4.11 million. At the time of the purchase, the company spent $100,000 to grade the lot and another $20,000 to build a small garage on the lot to house additional equipment. The company now wants to build a new facility on the site. The building ce is estimated at $5 million. What amount should be used as the initial cash flow for this project? Enter two decimal places. Do not enter the word million or a dollar sign ($). For example, if you answer is $2.75 million, enter only 2.75.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Give typing answer with explanation and conclusion
Transcribed Image Text:Justin's Manufacturing purchased a lot in Lake City ten years ago at a cost of $0.95 million. Today,
that lot has a market value of $4.11 million. At the time of the purchase, the company spent
$100,000 to grade the lot and another $20,000 to build a small garage on the lot to house
additional equipment. The company now wants to build a new facility on the site. The building cost
is estimated at $5 million. What amount should be used as the initial cash flow for this project?
Enter two decimal places. Do not enter the word million or a dollar sign ($). For example, if your
answer is $2.75 million, enter only 2.75.
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