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29 Your firm purchased a warehouse for $350,000 six years ago. Four years ago, repairs were made to the building which cost $60,000. The annual

29

Your firm purchased a warehouse for $350,000 six years ago. Four years ago, repairs were made to the building which cost $60,000. The annual taxes on the property are $20,000. The warehouse has a current book value of $273,000 and a market value of $305,000. The warehouse is totally paid for and solely owned by your firm. If the company decides to assign this warehouse to a new project, what value, if any, should be included in the initial cash flow of the project for this building?

$0
$273,000
$305,000
$410,000
$430,000

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