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Find what amount should be used as the initial cash flow

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Problem 1: Sarah's city bakery purchased a lot in Oklahoma city 3 years ago at a cost of $250,000. today, that lot has a market value of $284,000. at the time of the purchase, the company spent $8,000 to level the lot and another $10,000 to install a storm drains. the company now wants to build a new facility on that site. the building cost is estimated at $1.2 million. what amount should be used as the initial cash flow for this project?

Reference no: EM132750117

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