2. For the proposed store, TRS will build a new store in Liverpool on vacant land that it currently owns, which is different to the majority of the TRS existing stores which are operated in leased space within shopping centres. Today in 2023, the cost to construct the building for the new store is $2.1 million. For simplicity and their internal reporting, TRSs management accountants assume all assets have an effective life of 12 years. TRS has $78 million in cash and plans to use $1.6 million of this amount to pay to construct the building. TRS will operate the new store for a ten-year period at which time they will sell the land and building containing the new store. According to your contact (Nick Kyrios) at the Australian Tax Office, the useful life of the new building (which will house the new Liverpool store) is 25-years