Sea Maters Inc. purchased a lot in Phenix City 6 years ago at a cost of $290,000. Today, that lot has a market value of $470,000. At the time of the purchase, the company spent $8,000 to improve the site for a future use. The company now wants to build a new facility on that site. The actual contruction cost is estimated at $1.3 million.
What amount should be used as the initial cash outflow for this project? Put a positive dollar amount, and round it to a whole dollar, e.g., 123,456.