What is the net present value of the proposed plant

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Your company plans to spend $2,550,000 cash to build a plant that will produce benefits with a total present value of $5,100,000. Your company already owns the land on which it will build the plant. That land was purchased with cash several years ago for $1,100,000, which is the current book value of the land. The land could be sold for $2,275,000 after-tax today. What is the net present value of the proposed plant?

($825,000)

($275,000)

$0

$275,000

$825,000

Reference no: EM131552265

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