A parcel of corporate land that your firm owns will be used for a new plant site. Based on the following information, what intial investment cost allocation should the land receive in an NPV analysis?

-You inherited the land

-You put the land on the market for $500,000

-The lands current fair market value is $300,000

-A recent offer was made to purchase the land from your firm for $250,000

Please tell me what is the appropriate value you should use for the land in an analysis and WHY.