5. The Studebaker dealership in Haslett is considering building a new showroom. The owner's grandfather bought vacant land in the city 85 years ago for $150,000 on which the new dealership could be built. However, 7-Eleven has made the owner an offer to buy the land for $300,000 if he decides not to build a dealership on the site. It would cost $700,000 to build the dealership. What would the Initial Investment (cash flow in Year 0) be for purposes of calculating whether or not to build the dealership?

Question 5 options: $850,000 $1,300,000 $1,150,000 $1,000,000 $150,000