Nelson Mfg

Nelson Mfg.owns a manufacturing facility that is currently sitting idle.The facility is located on a piece of land that originally cost $159,000.The facility itself cost $1,390,000 to build.As of now,the book value of the land and the facility are $159,000 and $458,000,respectively.The firm owes no debt on either the land or the facility at the present time.The firm received a bid of $1,700,000 for the land and facility last week.The firm's management rejected this bid even though they were told that it is a reasonable offer in today's market.If the firm was to consider using this land and facility in a new project,what cost,if any,should it include in the project analysis?

A) $0
B) $617,000
C) $1,460,000
D) $1,700,000
E) $1,619,000