What amount should be used as initial cash flow for project

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Reference no: EM13950733

Kelly's Corner Bakery purchased a lot in Oil City five years ago at a cost of $720,000. Today, that lot has a market value of $860,000. At the time of the purchase, the company spent $43,000 to level the lot and another $4,300 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1,110,000. What amount should be used as the initial cash flow for this project?

Reference no: EM13950733

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