What amount should be used as the initial cash flow

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Reference no: EM13304567

Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $570,000. The lot was recently appraised at $860,000. At the time of the purchase, the company spent $47,000 to grade the lot and another $3,200 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 $1,250,000. What amount should be used as the initial cash flow for this building project?

Reference no: EM13304567

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