Question;General Food is considering building a new plant in Denver, Colorado. The company currently owns some land in Denver, which was purchased 3 years ago for $1.5 million but the current market value is estimated to be $1 million. The site analysis performed by a consulting firm (at a cost of $50,000 to General Food) shows that the land is suitable for the plant. The plant will cost $5.5 million to build. What is the initial investment in fixed assets assuming the marginal tax rate for General Food is 35%?
Paper#49374 | Written in 18-Jul-2015Price : $22