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5. Erom Touteg Inc., purchased a corner lot in Buckhead five years ago at a cost of $1,640,000. At the time of purchase, the company
5. Erom Touteg Inc., purchased a corner lot in Buckhead five years ago at a cost of $1,640,000. At the time of purchase, the company spent $50,000 to grade the lot and another $4,000 to build a small building on the lot to house a parking attendant. The company now wants to build a new mixed use office/retail facility on the site. The lot was recently appraised to have a fair market value of $2,810,000. The company will have to spend $20,000 on a market survey in order to determine the optimal combination of retail and office space. Additionally, the site will require $100,000 of prep work, and the building cost itself will be $4.2 million. Given this information, what is the time zero cash flow for the project? (8 points)
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