Answer:
$18.9 million
Explanation:
The computation of the proper cash flow amount to use as the initial investment in fixed assets is shown below:
= Land + building + grading
= $5.3 million + $12.8 million + $800,000
= $18.9 million
We simply added the land, building and grading cost so that the proper cash flow i.e to be used for the initial investment could come