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Your company purchased a piece of land six years ago for $175,000 and subsequently added $175,000 in improvements. The current book value of the property is $325,000. There are two options for future use of the land: 1) the land can be sold today for $370,000 on an after tax basis; 2) your company can destroy the past improvements and build a factory on the land. In consideration of the factory project, what amount (if any) should the land be valued at?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91624652

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