Question: Your firm is considering building a new office complex. Your firm already owns land suitable for the new complex. The current book value of the

Your firm is considering building a new office complex. Your firm already owns land suitable for the new complex. The current book value of the land is $130,000; however, a commercial real estate agent has informed you that an outside buyer is interested in purchasing this land would be willing to pay $700,000 for it. When calculating the net present value (NPV) of your new office complex, ignoring taxes, the appropriate incremental cash flow for the use of this land is $830,000 $130,000 $0 $700,000
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