Solution-What amount should be used as initial cash flow

What amount should be used as initial cash flow for project

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Reference no: EM132963124

Problem 1: Kelly's Corner Bakery purchased a lot in Oil City six years ago at a cost of $98,700. Today, that lot has a market value of $128,900. At the time of the purchase, the company spent $6,500 to level the lot and another $12,000 to install storm drains. The company now wants to build a new facility on the site at an estimated cost of $494,200. What amount should be used as the initial cash flow for this project?

Multiple Choice

Option 1: $592,900

Option 2: $611,400

Option 3: $641,600

Option 4: $623,100

Option 5: $582,400

Reference no: EM132963124

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What amount should be used as initial cash flow for project

Reference no: EM132963124

Reference no: EM132963124

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