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Finance dealership 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
Finance dealership 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 $800,000 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?
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