Question $3(1$ point$)$

Revolution Records will build a new recording studio on a vacant lot next to the operations center. The land was purchased five years ago for $$450,000.$ Today the value of the land has appreciated to $5780,000.$ Revolutionary Records did not consider the value of the land $($it had already spent the money to acquiret the land long before this project was conslidered$).$ The NPV of the recording studio was $55000000.$ should Revolution Records consider the land in the NPV analysis? if yes, what value should be ustd, $$450,000$ or $$780\mathrm{.}000?$

$Na,$$$780,000$

$110,50,000$

Yes, $$450,000$

$\%-$I, STanemen

Yes, $5600,000$