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Your firm is considering building a new office complex




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 land is $100,000, however, a commercial real estate agent has informed you that an outside buyer is interested in purchasing this land and would be willing to pay $650,000 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:Question 7 options:A) $650,000 inflowB) $0C) $100,000 outflowD) $650,000 outflow


Paper#49287 | Written in 18-Jul-2015

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