Big Joe's owns a manufacturing plant that is currently idle. The facility is located on land that originally cost $129,001. The facility itself cost $650,000 to build. To date, the book value of the land and facility is $129,000 and $186,500, respectively. Big Joe's received a $590,000 offer for the land and facilities last week (net of selling and other closing costs). They declined this offer despite being told that it is a reasonable offer in today's market. 

If Big Joe's were to consider using this land and facility in a new project, what cost, if any, should it include in the project analysis?

Answer rating: 100% (QA)

When considering the use of the land and facility in a new project Big Joes should use ... View the full answer