What amount should be used as the initial cash flow

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Reference no: EM131965675

Kelly's Corner Bakery purchased a lot in Oil City five years ago at a cost of $580,000. Today, that lot has a market value of $750,000. At the time of the purchase, the company spent $60,000 to level the lot and another $3,600 to install storm drains.

The company now wants to build a new facility on that site.

The building cost is estimated at $1,250,000. What amount should be used as the initial cash flow for this project?

Reference no: EM131965675

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