Illustrate what cost should it comprise in project analysis

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Reference no: EM13106836

Q. Nelson Mfg. owns a manufacturing facility that is currently sitting idle. The facility is located on a piece of land that originally cost $159,000. The facility itself cost $1,460,000 to build. As of now, the book value of the land and the facility are $159,000 and $458,000, respectively. The organization owes no debt on either the land or the facility at the present time. The organization received a bid of $1,500,000 for the land and facility last week. The organization's management rejected this bid even though they were told that it is a reasonable offer in today's market. If the organization was to consider using this land and facility in a new project, Illustrate what cost, if any, should it comprise in the project analysis

Reference no: EM13106836

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