What is the correct initial cash flow for your analysis

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Question: You are preparing a business plan for a new apartment development. You purchased the land 2 years ago for $400,000, but the real estate market has been good and you have an offer from a buyer for $617,000. Taxes paid last year were $10,000 and you just paid your architect $15,000 for the building plans. Building permits will cost $5,000 and it will cost $514,000 to construct the apartment.

What is the correct initial cash flow for your analysis?

Reference no: EM133433298

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