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Two years ago, Leap Before You Think Enterprises Inc. built a factory to manufacture widgets that cost the firm $20,000,000 (which included the cost of

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Two years ago, Leap Before You Think Enterprises Inc. built a factory to manufacture widgets that cost the firm $20,000,000 (which included the cost of equipment). Unfortunately, they built it at the bottom of a canyon that floods every year during the rainy season, which has made productivity rather difficult, and the company cannot manufacture enough widgets to be profitable. An outside offer has been made to purchase the factory and all its equipment for $16,000,000. Assuming the company has no other fixed assets, has not been able to find a better offer for the factory, and it has been able to take depreciation costs of a total of $5,000,000 since building the factory, what is the relationship of the market value to the book value of the company's fixed assets? Multiple Choice Market Value is higher than Book Value. Book Value is higher than Market Value Book Value is equal to Market Value

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