Crowdly
Add to Chrome
Jamestown Ltd. currently produces boat sails and is considering expanding its op...
✅ The verified answer to this question is available below. Our community-reviewed solutions help you understand the material better.
Jamestown Ltd. currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. The company owns land beside its current manufacturing facility that could be used for the expansion. The company bought this land ten years ago at a cost of R250 000. Today, the land is valued at R425 000. The grading and excavation work necessary to build on the land will cost R15 000. The company has some unused equipment which it currently owns valued at R60 000. This equipment could be used for producing awnings if R5 000 is spent for equipment modifications. Other equipment costing R780 000 will also be required. What is the amount of the initial cash flow for this expansion project?
0%
0%
0%
0%
0%