Calculating the net present value of new office complex

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Your firm is considering building a new office complex. Your firm already owns land suitable for the new complex. The current book value of the land is $100,000; however, a commercial real estate agent has informed you that an outside buyer is interested in purchasing this land and would be willing to pay $650,000 for it. When calculating the net present value (NPV) of your new office complex, ignoring taxes, the appropriate incremental cash flow for the use of this land is:

A) $650,000 inflow B) $0 C) $100,000 outflow D) $650,000 outflow

Reference no: EM13885034

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