Your Firm Is Considering Building a New Office Complex

question 85

Multiple Choice

Your firm is considering building a new office complex.Your firm already owns land suitable for the new complex.The current book value of the land is $100,000,however a commercial real estate again has informed you that an outside buyer is interested in purchasing this land and would be willing to pay $650,000 for it.When calculating the NPV of your new office complex,ignoring taxes,the appropriate incremental cash flow for the use of this land is:

• A) $650,000
• B) $0
• C) $100,000
• D) $750,000

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Definitions:

Shaft

A cylindrical object or component that transmits rotational force or motion from one part of a machine to another.

Force And Shrink Fits

Describes a class of fits achieved by creating a size differential between two mating components such that the parts must be forced together, often involving heating or cooling to assemble.

Transitional Fit

A type of fit between two mating parts where interference may or may not occur, allowing for a balance between clearance and interference fits.

Clearance

The intentional space or gap between two parts or components, necessary to ensure proper fit, movement, or function.