Jamestown Ltd. currently produces boat sails and is considering expanding its operations to include

awnings. The expansion would require the use of land the firm purchased three years ago at a cost

of $142,000 that is currently valued at $137,500. The expansion could use some equipment that

is currently sitting idle if $6,700 of modifications were made to it. The equipment originally cost

$139,500 six years ago, has a current book value of $24,700, and a current market value of $39,000.

Other capital purchases costing $780,000 will also be required. What is the amount of the initial cash

flow for this expansion project?

A. $953,400

B. $962,300

C. $948,900

D. $927,800

E. $963,200