Uptown Furniture purchased a corner lot 5 years ago at a cost of $670,000. The lot was recently appraised at $640,000. At the time of the purchase, the company spent $45,000 to grade the lot and another $100,000 to pave the lot for commuter parking. The company now wants to build a new retail store on the site. The building cost is estimated at $1.6 million. What amount should be used as the initial cash flow for this building project?
Multiple Choice
$2,415,000
$1,600,000
$2,385,000
$2,240,000
$2,270,000
initial CF = appraised value of lot +building cost = 640000+1600000 = 2240000
Uptown Furniture purchased a corner lot 5 years ago at a cost of $670,000. The lot...
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