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Revolution Records will build a new recording studio on a vacant lot next to the operations center. The land was purchased five years ago for

Revolution Records will build a new recording studio on a vacant lot next to the operations center. The land was purchased five years ago for $450,000. Today, the value of the land has appreciated to $780,000. Revolution Records did not consider the value of the land in its NPV calculations for the studio project and came up with an NPV of $600,000. What is the correct NPV value?

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