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Bonilla Boats purchased a corner lot five years ago at a cost of $730,000. The lot was recently appraised at $680,000. At the time of

Bonilla Boats purchased a corner lot five years ago at a cost of $730,000. The lot was recently appraised at $680,000. At the time of the purchase, the company spent $25,000 to grade the lot and another $80,000 to pave the lot for customer parking. The company now wants to build a new retail store on the site. The building cost is estimated at $1.4 million. What amount should be used as the initial cash flow for this building project?

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  • $2,080,000

  • $2,130,000

  • $2,235,000

  • $2,185,000

  • $1,400,000

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