Used as the initial cash flow for this building project

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Reference no: EM131348437

Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $560,000. The lot was recently appraised at $582,000. At the time of the purchase, the company spent $43,000 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 $1,190,000. What amount should be used as the initial cash flow for this building project?

a. $1,772,000

b. $1,780,300

c. $1,776,300

d. $1,758,300

e. $1,750,000

Please show some work to back up the answer.

Reference no: EM131348437

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