Beery Inc. reported the following results from last year's operations: Sales$11,400,000 Variable expenses 8,180,000 Contribution margin 3,220,000 Fixed expenses 2,422,000 Net operating income$798,000 Average operating assets$6,000,000 At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales$2,880,000 Contribution margin ratio 30% of sales Fixed expenses$720,000 The company's minimum required rate of return is 12%. If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?