The LSUS Corporation purchased a corner lot five years ago at a cost of $$498,000$ and

then spent $$63,500$ on grading and drainage so the lot could be used for storing outdoor

inventory. The lot was recently appraised at $$610,000.$ The company now wants to build a

new retail store on the site. The building cost is estimated at $$1\mathrm{.}1$ million. What amount

should be used as the initial cash flow for this building project? $($Hint: think about the

opportunity cost$)$

a$.$ $$1,661,500$

b$.$ $$1,100,000$

c$.$ $$1,710,000$

d$.$ $$1,498,000$