Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2018. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash interest Effective interest Decrease in balance Outstanding balance 1/1/2018 $ 207,020 6/30/2018 $ 7,000 $ 6,211 $ 789 206,230 12/31/2018 7,000 6,187 813 205,417 6/30/2019 7,000 6,163 837 204,580 12/31/2019 7,000 6,137 863 203,717 6/30/2020 7,000 6,112 888 202,829 12/31/2020 7,000 6,085 915 201,913 6/30/2021 7,000 6,057 943 200,971 12/31/2021 7,000 6,029 971 200,000 LPC issued the bonds:

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?