Marwa & Co purchased a parcel of land six years ago for $756005. At that time, the firm invested $173780 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $53,500 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $885990 What value should be included in the initial cost of the warehouse project for the use of this land
Marwa & Co purchased a parcel of land six years ago for $756005. At that time, the firm invested $173780 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $53,500 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $885990 What value should be included in the initial cost of the warehouse project for the use of this land
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Marwa & Co purchased a parcel of land six years ago for $756005. At that time, the firm invested $173780 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $53,500 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $885990
What value should be included in the initial cost of the warehouse project for the use of this land
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