Overseen the use of the lot for daily commuter parking

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Reference no: EM131049651

Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised at $810,000. At the time of the purchase, the company spent $50,000 to grade the lot and another $4,000 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 $1.2 million. What amount should be used as the initial cash flow for this building project?

a. $1,200,000

b. $1,840,000

c. $1,890,000

d. $2,010,000

e. $2,060,000

Reference no: EM131049651

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