Used as the initial cash flow

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Reference no: EM13767650

Dilwater Furniture purchased a corner lot in Pittsburg five years ago at a cost of $890,000. The lot was recently appraised at $1,070,000. At the time of the purchase, the company spent $80,000 to grade the lot and another $120,000 to pave the lot for commuter parking. The company now wants to build a new retail store on the site. The building cost is estimated at $1.8 million. What amount should be used as the initial cash flow for this building project?

a. $3,070,000

b. $1,070,000

c . $1,800,000

d. $2,870,000

e. $2,890,000

Reference no: EM13767650

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