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(1 of 10) Your company plans to spend $1,750,000 cash to build a plant that will produce benefits with a total present value of $3,000,000.
(1 of 10)
Your company plans to spend $1,750,000 cash to build a plant that will produce benefits with a total present value of $3,000,000. Your company already owns the land on which it will build the plant. That land was purchased with cash several years ago for $300,000, which is the current book value of the land. The land could be sold for $1,275,000 after-tax today. What is the net present value of the proposed plant?
($325,000)
($25,000)
$0
$950,000
$1,250,000
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