Problem:
SciTE Industries purchased a corner lot in five years ago at a cost of $645 thousand. The lot was recently appraised at $880 thousand. At the time of the purchase, the company spent $52 thousand to grade the lot and another $10 thousand 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 $1.31 million.
Required:
Question: What amount should be used as the initial cash flow for this building project?
Note: Please provide full description.