QUESTION 34

Justin's Manufacturing purchased a lot in Lake City ten years ago at a cost of $790,000. Today. that lot has a market value of $1.2 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 $1.7 million. What amount should be used as the initial cash flow for this project a. -$2, 490,000 b. -$2, 610,000 c. -$2, 900,000 d. -$3, 020,000 c. -$3, 690,000