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Harris Food Service LLC plans to open a new location of a national fast food chain restaurant on property it purchased 4 years ago for

Harris Food Service LLC plans to open a new location of a national fast food chain restaurant on property it purchased 4 years ago for $40,000. If the land were sold today, the company would net $250,000. The restaurant will cost $850,000 to build, and the site requires $7,000 worth of preparation before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

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