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Expansion, Inc. purchased a building for $485,000 seven years ago. Five years ago, repairs were made to the building which cost $80,000. The annual taxes
Expansion, Inc. purchased a building for $485,000 seven years ago. Five years ago, repairs were made to the building which cost $80,000. The annual taxes on the property are $30,000. The building has a current market value of $424,000 and a current book value of $399,000. The building is totally paid for and solely owned by the firm. If the company decides to assign this building to a new project, what value, if any, should be included in the initial cash flow of the project for this building?
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