Solution-What amount should be used as the initial cash flow

What amount should be used as the initial cash flow

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Question - Bobby's Retail purchased a lot in Oil City 6 years ago at a cost of $302,000. Today, that lot has a market value of $401,000. At the time of the purchase, the company spent $16,000 to level the lot and another $25,000 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1,524,000. What amount should be used as the initial cash flow for this project?

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What amount should be used as the initial cash flow

Reference no: EM133061861

Reference no: EM133061861

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