Mason Farms Purchased a Building for $689,000 Eight Years Ago

Multiple Choice

Mason Farms purchased a building for $689,000 eight years ago.Six years ago,repairs were made to the building which cost $136,000.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?

A) $494,000
B) $582,000
C) $840,000
D) $865,000
E) $953,000