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24. Kelly?s corner Bakery purchased a lot of Oil C...

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Question

24. Kelly?s corner Bakery purchased a lot of Oil City 6 years ago at a cost of $302,000. Today, that lot has a market value of $340,000. At the time of purchase, the company spent $15,000 to level the lot and another $20,000 to install storm drains. The company now wants to build a new facility on the site. The building cost is estimated at $1.51 million. What amount should be used as the initial cash flow for the project a. 1,850,000 b. $1,875,000

 

Paper#8435 | Written in 18-Jul-2015

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