Kelly's Corner Bakery purchased a lot in Oil City five years ago at a cost of $730,000.
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Question:
Kelly's Corner Bakery purchased a lot in Oil City five years ago at a cost of $730,000. Today, that lot has a market value of $860,000. At the time of the purchase, the company spent $44,000 to level the lot and another $4,700 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1,260,000.
What amount should be used as the initial cash flow for this project?
$-2,034,000
$-2,120,000
$-1,260,000
$-1,990,000
$-2,164,000
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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