Samson's Purchased a Corner Lot Five Years Ago at a Cost

Samson's purchased a corner lot five years ago at a cost of $640,000. The lot was recently appraised at $820,000. At the time of the purchase,the company spent $50,000 to grade the lot and another $4,000 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 $1.5 million. What amount should be used as the initial cash flow for this building project?

A) $694,000
B) $1,460,000
C) $1,514,000
D) $1,823,000
E) $2,320,000