mgmt 109 hw 6

mgmt 109 hw 6 - James Weinstock Mgmt 109#67573931 Problem...

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James Weinstock Mgmt 109 #67573931 November 21, 2011 Problem Set 6 Introduction to Managerial Finance Fall 2011 10.1- If a company bought land six years ago for 6 million $ in anticipation of using it as a warehouse and distribution site. If the land were sold today, the company would net 6. Million$. The company wants to build its new manufacturing plant on this land, the plant will cost 14.2 million$ to build, and the site requires 890,000$ worth of grading before it is suitable for construction. What is the proper cash flow amount to use as an initial investment in fixed assets when evaluation this project? Why? 20.2 million+890,000 because this is how much we need to start the investment.? 10.2- winnebagel currently sells 30,000 homes per year at 53,000$ each, and 12,000 luxury homes at 91,000 $. Company hopes to sell 19k of these at 13k$ each. Should it boost existing sales or reduce it? What is the amount to use as the annual sales figure when evaluating this project? 403,600,000$
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mgmt 109 hw 6 - James Weinstock Mgmt 109#67573931 Problem...

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