SciTE Industries purchased a corner lot in five years ago at a cost of $684 thousand. The lot was recently appraised at $874 thousand.
At the time of the purchase, the company spent $59 thousand to grade the lot and another $18 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 $1.45 million. What amount should be used as the initial cash flow for this building project?