Your company plans to spend $2,150,000 cash to build a plant that will produce benefits with a total present value of $4,050,000. Your company already owns the land on which it will build the plant. That land was purchased with cash several years ago for $700,000, which is the current book value of the land. The land could be sold for $1,775,000 after-tax today. What is the net present value of the proposed plant?

($575,000)

($125,000)

$0

$125,000

$1,900,000