What amount should be used as the initial cash flow

Reference no: EM13281178

Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $530,000. The lot was recently appraised at $555,000. At the time of the purchase, the company spent $40,000 to grade the lot and another $3,100 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 $1,100,000. What amount should be used as the initial cash flow for this building project?

1. $ 1,630,000
2. $ 1,637,100
3. $ 1,655,000
4. $ 1,659,000
5. $ 1,662,100

Reference no: EM13281178

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