The presence of transactions costs and information costs A. lowers the cost of funds to borrowers. B. increases the efficiency of the financial system. C. lowers the expected return to lenders. D. raises the expected return to lenders.

Mason farms purchased a building for $689,000 eight years ago. six years ago, repairs costing $136,000 were made to the building. the annual taxes on the property are $11,000. the building has a current market value of $840,000 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? $0$582,000$840,000$865,000$953,000