Mona-Dooleys owns land beside its current manufacturing facility that could be used for a proposed expansion. The company bought this land 5 years ago at a cost of $419,000. At the time of purchase, the company paid $44,000 to level out the land so it would be suitable for future use. Today, the land is valued at $595,000. The company has some unused equipment that it currently owns valued at $38,000. This equipment could be used for production if $12,000 is spent for equipment modifications. Other equipment costing $400,000 will also be required. What is the amount of the initial cash flow for this expansion project?

Show how you arrived at the answer below.