Your company purchased a piece of land five 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 $350,000 on a net after-tax basis; 2) your company can destroy the past improvements and build a factory on the land. In consideration of the factory project, what amount (if any) should the land be valued at?

Select one: a. The present book value of $225,000. b. The property should be valued at zero since it is a sunk cost. c. The sales price of $350,000 less the book value of the improvements. d. The after-tax sales value of $350,000. e. The original $150,000 purchase price of the land itself.