There are two options for future use of the land

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Your company purchased a piece of land five years ago for $150,000 and subsequently added $200,000 in improvements. The current book value of the property is $275,000. There are two options for future use of the land: 1) the land can be sold today for $395,000 on an aftertax 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?

Reference no: EM131190123

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