Problem $10-1$ Relevant Cash Flows $[$LO$1]$

Parker & Stone, Incorporated, is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $$5\mathrm{.}7$ million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $$6$ million. The company wants to build its new manufacturing plant on this land; the plant will cost $$13\mathrm{.}2$ million to build, and the site requires $$840,000$ worth of grading 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? $($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e$.$g$.,1,234,567.)$

Answer is complete but not entirely correct