Samson's Purchased a Lot Four Years Ago at a Cost

Samson's purchased a lot four years ago at a cost of $398,000.At that time,the firm spent $289,000 to build a small retail outlet on the site.The most recent appraisal on the property placed a value of $629,000 on the property and building.Samson's now wants to tear down the original structure and build a new strip mall on the site at an estimated cost of $2.3 million.What amount should be used as the initial cash outflow for the new project?

A) $2,987,000
B) $2,242,000
C) $2,058,000
D) $2,300,000
E) $2,929,000