Answer:
$730,000 should be Included in the Initial cash flow of the project for this building
Explanation:
Complete question "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?"
In this context where the company decides to use this building for the new project, the current Market value has to be included in the initial cash flow of the project for this building because it is is an opportunity cost. Hence, $730,000 should be Included in the Initial cash flow of the project for this building.
