Initial cash flow of the project for this building

Assignment Help Financial Accounting

Reference no: EM13825902

Mason Farms purchased a building for $729,000 eight years ago. Six years ago, repairs were made to the building which cost $136,000. The annual taxes on the property are $11,000. The building has a current market value of $825,000 and a current book value of $494,000. The building is totally paid for and solely owned by the firm. If the company decides to use this building for a new project, what value, if any, should be included in the initial cash flow of the project for this building?

$494,000

$582,000

$825,000

$865,000

$953,000

Reference no: EM13825902

Questions Cloud

Difference between work and employment : The problem related to Management and it discusses about the difference between work and employment. The differences between work and employment have been clearly explained in the solution in detail

Write a report on a community health problem : Write a report on a community health problem.

Importance of knowledge management strategies : The question related to Business Management and it discuss about writing an essay highlighting the importance of knowledge management strategies in an organization operating in today knowledge-based economy

Determine the expected number of new clients per month : At a computer-consulting firm, the number of new clients that they have obtained each month has ranged from 0 to 6. The number of new clients has the probability distribution that is shown below. Determine the expected number of new clients per m..

Initial cash flow of the project for this building : Mason Farms purchased a building for $729,000 eight years ago. Six years ago, repairs were made to the building which cost $136,000. The annual taxes on the property are $11,000. The building has a current market value of $825,000 and a current book ..

Report on nyse and nasdaq : Write a report for a group of new stock brokers about the NYSE-Euronext and the NASDAQ. Visit both the NYSE

Expanding and expects operating cash flows : Bruno's Lunch Counter is expanding and expects operating cash flows of $26,000 a year for 4 years as a result. This expansion requires $39,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project req..

Write about correlation between price quality and quantity : The question is belongs to Economics and it is an essay which explain the correlation between quality, price and quantity. Quantity, quality and price have always been matters of concern for many economists.

Capital investment project to satisfy suppliers of capital : What would be the minimum expected return from a new capital investment project to satisfy the suppliers of the capital? Assume the applicable tax rate is 40%, interest on debt is 7%, flotation cost per share of preferred stock is $0.75, and flotatio..

User Account

All Pages