Capital Budgeting

You are the judge in a settlement case. You need to compute the value of a piece of land in Denver Co. The valuation is subject to the following conditions

1. The settlement will take place at the end of 2019
2. The current appraised value of the land on 1/1/2018 is $500.000
3. The piece of land has a building on it that is uninhabitable . It takes one year to bring the building down at a cost of $100,000. That money must be paid now.
4. The land can be rented in 2019 at a net proceeds of 40,000
5. While rented the land cost $20,000 in property taxes
6. Your real estate adviser notes that selling prices of comparable lands in Denver have declined, in real terms, at an average rate of 3% per year over the last 5 years.
7. The cost of capital is 10%
8. The sale of the land at the end of 2019 is subject to a 10 % commission.

What should someone pay today for this land if given the choice?