Question $12$

Justin's Manufacturing purchased a lot in Lake City ten years ago

at a cost of $$0\mathrm{.}53$ million. Today, that lot has a market value of

$$2\mathrm{.}01$ million. At the time of the purchase, the company spent

$$100,000$ to grade the lot and another $$20,000$ to build a small

garage on the lot to house additional equipment. The company

now wants to build a new facility on the site. The building cost is

estimated at $$7$ million. What amount should be used as the initial

cash flow for this project? Enter two decimal places. Do not

enter the word million or a dollar sign $($$$).$ For example, if your

answer is $$2\mathrm{.}75$ million, enter only $2\mathrm{.}75.$