What amount should be used as the initial cash flow


ABC purchased a lot in New York City 6 years ago at a cost of $280,000. Today that lot has a market value of $340,000. At the time of the purchase, the company spent $15,000 to level the lot and another $20,000 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1.47 million. What amount should be used as the initial cash flow for this project?

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Accounting Basics: What amount should be used as the initial cash flow
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