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Shelton Co. purchased a parcel of land six years ago for $860,500. At that time, the firm invested $132,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $47,500 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $912,000. What value should be included in the initial cost of the warehouse project for the use of this land

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The value should be included in the initial cost of the warehouse project for the use of this land is $912,000.

When embarking on a project, the value of the assets to be used should be their current market value because they reflect the current state of the assets at the time the project was embarked on thereby allowing for more accurate analysis for instance in terms of depreciation or net worth of the project.

The current market price of the parcel of land as the firm is about to embark on a project is $912,000 so this should be the considered the initial cost of project in terms of land.

Additional information on market value can be found at https://brainly.com/question/13950288.

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