A few years ago, Champions Inc purchased a storage garage. The firm paid $200,000 for this space. Gerry, the owner, decides he wants to expand his storage space and purchase a new garage in another part of town. This expansion will cost him about $400,000. Once the new storage space is occupied, Champions will generate about $60,000 per year in new sales.

Based on this information, what is the total Net Capital Expenditure?

Multiple Choice

• + $60,000

• $400,000

• -200,000

• $600,000

• $340,000