Riverton Sails Is Considering Expanding Its Sail Production Operations to Include

Multiple Choice

Riverton Sails is considering expanding its sail production operations to include awnings.The expansion would use land currently valued at $898,000 that was purchased for $779,000 cash.The expansion would require modifications costing $18,400 to some unused equipment along with the purchase of $314,800 of new equipment.The unused equipment is debt-free,fully depreciated,and has a market value of $27,900.What is the Time 0 cash flow for this expansion project?

A) $1,231,200
B) $1,139,900
C) $333,200
D) $452,200
E) $1,259,100