Price Industries purchased a piece of milling equipment four years ago for $14

Price Industries purchased a piece of milling equipment four years ago for $149000 and at the beginning of last year spent $11000 to update the equipment
with the latest technology. The company no longer uses this equipment in its current operations and has received an offer of $110000 from a firm that would
like to purchase it. Price is debating whether to sell the equipment or to expand its operations so that the equipment can be used. When evaluating the
expansion option what value if any should the firm assign to this equipment as an initial cost of the project?

$0

$21000

$89000

$110000