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Mr. Big purchased a corner lot five years ago at a cost of $498,000 and then...

Mr. Big 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. 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 opportunity costs at time 0 for this building project?

$1,710,000

$673,500

$1,100,000

$561,500

$610,000

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jeff jeffy answered 2 years ago
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