Your firm purchased a warehouse for $350,000 six years ago. Four years ago, repa

Question

Your firm purchased a warehouse for $350,000 six years ago. Four years ago, repairs were made to the building which cost $60,000. The annual taxes on the property are $20,000. The warehouse has a current book value of $273,000 and a market value of $305,000. The warehouse is totally paid for and solely owned by your firm. If the company decides to assign this warehouse to a new project, what value, if any, should be included in the initial cash flow of the project for this building? $0 $273,000 $305,000 $410,000 $430,000 $0 $273,000 $305,000 $410,000 $430,000 $0 $273,000 $305,000 $410,000 $430,000

Explanation / Answer

$273,000

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