A company is considering building a distribution center on undeveloped land that it

acquired more than ten years ago at a cost of $$400,000.$ The company estimates the

cost of putting in utilities, sewers, roads and other such costs of preparing the land

for the distribution center at $$200,000.$ Three months ago the company also spent

$$20,000$ to conduct a land appraisal which found the market value of the land is now

$$600,000.$ In evaluating this capital project, the initial investment outlay associated

with the use of the land by the distribution center will most likely be considered to

be:

The amount is $$620,000.$

The amount is $$800,000.$

The amount is $$820,000.$

The amount is $$1,200,000.$