Problem 9.01 – Initial Investment in Fixed Assets for a New Manufacturing Plant
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Calculate the cash flow amount required for the initial investment in fixed assets for a new project involving building a manufacturing plant on previously owned land. Use the current market value of the land, the cost of building the plant, and the cost of grading the land to determine the appropriate initial investment amount.
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