Question
PLEASE SHOW ME HOW TO SOLVE USING FINANCIAL CALCULATOR Drake Builders, Inc. purchased a lot in Tucson, Arizona 10 years ago at a cost of
PLEASE SHOW ME HOW TO SOLVE USING FINANCIAL CALCULATOR
Drake Builders, Inc. purchased a lot in Tucson, Arizona 10 years ago at a cost of $380,000. At the time of the purchase, the company spent $15,000 to level the lot and another $20,000 to install storm drains. Today, that lot has a market value of $650,000. The company now wants to build a new facility on that site. The building cost is estimated at $1.9 million. What amount should be used as the initial cash flow for this project? (Ch10)
a. $1,900,000 b. -$1,835,000 c. -$2,550,000 d. -$2,295,000 e. $2,085,000
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