Six years ago, a company named XYZ Corp. acquired a piece of land for $700,000 and invested an additional $150,000 to grade the site. As they were not ready to utilize the site, they decided to lease the land for $47,000 per year. The lease is now expiring, and they are considering constructing a warehouse on the site. The land's present value is $950,000. What amount should be included in the initial cost of the warehouse project to account for the land's usage? $0 $897,000 $950,000 $1,042,000 $850,000