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Blossom, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Blossom currently warehouses its inventory in a public

Blossom, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Blossom currently warehouses its inventory in a public warehouse across town. Rent on the warehouse and delivering and picking up inventory cost Blossom $59520 per year. The building will cost Blossom $558000. Blossom will depreciate the building for 20 years. At the end of 20 years, the building will have a $155000 salvage value. Blossom's required rate of return is 11%.

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