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Jet Holdings purchased a building for $720,000 eight years ago. Six years ago, repairs were made to the building which cost $152,000. The annual taxes
Jet Holdings purchased a building for $720,000 eight years ago. Six years ago, repairs were made to the building which cost $152,000. The annual taxes on the property are $12,000. The building has a current market value of $865,000 and a current book value of $465,000. The building is totally paid for and solely owned by the firm. If the company decides to use this building for 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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