What amount should be used as the initial cash flow

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Problem 1: Justin's Manufacturing purchased a lot in Lake City ten years ago at a cost of $0.53 million. Today, that lot has a market value of $2.94 million. At the time of the purchase, the company spent $100,000 to grade the lot and another $20,000 to build a small garage on the lot to house additional equipment. The company now wants to build a new facility on the site. The building cost is estimated at $4 million. What amount should be used as the initial cash flow for this project? Enter two decimal places. Do not enter the word million or a dollar sign ($). For example, if your answer is $2.75 million, enter only 2.75.

Reference no: EM132659487

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