Uptown Furniture Purchased a Corner Lot 5 Years Ago at a Cost

Uptown Furniture purchased a corner lot 5 years ago at a cost of $670,000.The lot was recently appraised at $640,000.At the time of the purchase,the company spent $45,000 to grade the lot and another $100,000 to pave the lot for commuter parking.The company now wants to build a new retail store on the site.The building cost is estimated at $1.6 million.What amount should be used as the initial cash flow for this building project?

A) $2,415,000
B) $1,600,000
C) $2,385,000
D) $2,240,000
E) $2,270,000