Find what amount should be used as the initial cash flow

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Question: SciTE Industries purchased a corner lot in five years ago at a cost of $641 thousand. The lot was recently appraised at $898 thousand. At the time of the purchase, the company spent $53 thousand to grade the lot and another $12 thousand to build a small building on the lot to house a parking lot attendant who has overseen the use of the lot for daily commuter parking. The company now wants to build a new retail store on the site. The building cost is estimated at $1.15 million. What amount should be used as the initial cash flow for this building project?

Reference no: EM132078635

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