Amount should be used as initial cash flow for this project

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Alamosa Corp. purchased a lot in Arvada 3 years ago at a cost of $250,000. Today, that lot has a market value of $360,000. At the time of the purchase, the company spent $20,000 to level the lot and another $25,000 to install storm drains. The company now wants to build a new facility on that site to expand its business. The building cost is estimated at $1,600,000. What amount should be used as the initial cash flow for this project?

Reference no: EM13879353

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