Question 26 9pt Your company purchased a piece of land 5 years ago for $150,000 and subsequently added $175,000 in improvements. The current book value of the property is $225,000. There are two options for future use of the land: 1) the land can be sold today for $375,000 cash after taxes; or 2) your company can destroy the past improvements and build a factory on the land. In deciding whether or not to build the factory, what amount (if any) should the land be valued at? The property should be valued at zero, since it is a sunk cost. The original $150,000 purchase price of the land itself. The present boolyvalue of $225,000. The sales price of $375,000 minus the book value of the improvements. The after-tax salvage value of $375,000. Question 27 9 pts A firm is considering a project that will generate perpetual after-tax cash flows of $25,000 per year beginning next year. The project has the same risk as the firm's overall operations. Equity costs 15% and debt costs 6% on an after-tax basis. The firm's D/E ratio is 1.2. What is the most the firm can pay for the project and still earn its required return? O $212,250 O $247.750 O $366,250 O $276,500