A factory wants to know which alternative is more favorable to it between expanding its warehouses or renting one for a period of eight years. If you expand your warehouses, this implies an initial investment of $ 12'000.00, a monthly maintenance of $ 100.00, repairs every year of $ l'OOO. OO and a market value at the end of the eight years of $15'000.00. If you rent a winery must pay the sum of $ 300.00 per month in advance the first year, readjustable 18% each year. The company's opportunity rate is 38% annual.