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The Corner Market has decided to expand its retail store by building on a vacant lot it currently owns. This lot was purchased fourteen years

The Corner Market has decided to expand its retail store by building on a vacant lot it currently owns. This lot was purchased fourteen years ago at a cost of $99,000, which the firm paid in cash. During the last fourteen years, the firm has spent another $38,000 on land improvements, all of which was also paid in cash. Today, the lot has a market value of $329,000. What value should be included in the analysis of the expansion project for the cost of the land?

Question 24 options:
1) The sum of the cash paid to date for both the lot and the improvements
2) The original purchase price only
3) The current market value of the land plus the cash paid for the improvements
4)

The current market value of the land

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