Question $6$

Leprechaun Co$.$ purchased a lot in Buffalo six years ago at a cost of $$520,000.$ The lot was

recently appraised at $$780,000.$ At the time of the purchase, the company spent $$40,000$

to grade the lot and another $$3,000$ to build a small building on the lot to house a parking

lot attendant who has overseen the use of the lot for daily commuter parking. The company

now wants to build a new retail store on the site. The building cost is estimated at $$1$

million. What amount should be used as the initial cash flow for this building project?

$$1,780,000$

$$1,820,000$

$$1,990,000$

$$2,080,000$

$$2,140,000$