What amount should be used as the initial cash flow

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Reference no: EM131981266

SciTE Industries purchased a corner lot in five years ago at a cost of $671 thousand. The lot was recently appraised at $888 thousand.

At the time of the purchase, the company spent $42 thousand to grade the lot and another $16 thousand 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 $1.26 million. What amount should be used as the initial cash flow for this building project?

Reference no: EM131981266

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