Dilwater Furniture Purchased a Corner Lot in Pittsburg Five Years

Dilwater Furniture purchased a corner lot in Pittsburg five years ago at a cost of $890,000.The lot was recently appraised at $1,070,000.At the time of the purchase,the company spent $80,000 to grade the lot and another $120,000 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 $1.8 million.What amount should be used as the initial cash flow for this building project?

A) $3,070,000
B) $1,070,000
C) $1,800,000
D) $2,870,000
E) $2,890,000