Alfredo$$s Pizza Caf$($Alfredo$)$ owns a parcel of land with a small building that is used for a dine$-$in restaurant. At December $31,$ management determines the following:

The fair value of the land and building is $$460,000.$

By using the land and building for a restaurant instead of renting, the cost savings on rent expense over the life of the building has a present value of $$420,000.$

If the building were rented to another tenant, the present value of the lease payments received would be $$470,000$ over the life of the building.

Which of the following statements related to entity$-$specific value is correct?