Question

Kelly's Corner Bakery purchased a lot in Columbus City five years ago at a cost of $740,000. Today, that lot has a market value of $960,000. At the time of the purchase, the company spent $55,000 to level the lot and another $5,800 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1,300,000. The amount should be used as the initial cash outflow for this project is $____. Put a positive dollar amount, and round it to a whole dollar, e.g., 123456.

Answer 1

initial cash flow = $2,260,000 [ 960000+1300000)