What amount should be used as initial cash flow

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Reference no: EM131312305

Kelly's Corner Bakery purchased a lot in Oil City five years ago at a cost of $610,000. Today, that lot has a market value of $790,000. At the time of the purchase, the company spent $46,000 to level the lot and another $4,200 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1,010,000. What amount should be used as the initial cash flow for this project?

Reference no: EM131312305

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What amount should be used as initial cash flow : Kelly's Corner Bakery purchased a lot in Oil City five years ago at a cost of $610,000. Today, that lot has a market value of $790,000. At the time of the purchase, the company spent $46,000 to level the lot and another $4,200 to install storm drains..

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