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

Marshall's purchased a corner lot five years ago at a cost of $498,000 and then spent $63,500 on grading and drainage so the lot could be used for storing outdoor inventory.The lot was recently appraised at $610,000.The company now wants to build a new retail store on the site.The building cost is estimated at $1.1 million.What amount should be used as the initial cash outflow for this building project?

A) $1,661,500
B) $1,100,000
C) $1,208,635
D) $1,710,000
E) $1,498,000