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Border Supply Company is considering opening a plant in Vietnam. The company anticipates gross profit of $3,500,000 from this new plant. It will cost $2,000,000

Border Supply Company is considering opening a plant in Vietnam. The company anticipates gross profit of $3,500,000 from this new plant. It will cost $2,000,000 to set up the plant and $800,000 to train employees. An additional $160,000 will be spent to build relationships with the local suppliers. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?

Benefits outweigh costs by $700,000.

Benefits outweigh costs by $540,000.

Costs outweigh benefits by $540,000.

Costs outweigh benefits by $700,000.

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