Mason farms purchased a building for $689,000 and made repairs costing $136,000. the annual taxes on the property are $8,200. the building has a current market value of $730,000 and a current book value of $394,000. the building is mortgage-free. 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?

$730,000

Explanation:

In the given question, the building was purchased and it repairs also. Plus, annual taxes are applicable to the property. The current market value and the book value of the building is also given in the question

For including the amount in the initial cash flow for the building project we consider the current market value of the building i.e $730,000. No other cost should be recognized

a ab

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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