Answer:
$200,000
Explanation:
Data provided in the question:
Amount willing to spend in cash to build the plant = $2,350,000
Total present value of the benefits produced = $4,575,000
Purchasing cost of the land = $900,000
Present value of the land = $2,025,000
Now,
Total present value of investment
= Amount spent to build the plant + Present value of the land
= $2,350,000 + $2,025,000
= $4,375,000
Therefore,
The net present value of the proposed plant
= Total present value of the benefits - Total present value of investment
= $4,575,000 - $4,375,000
= $200,000
