You just started working at a new CBD company who has hired you to evaluate their business plan. Five years ago, they purchased a building for $1 million, which is being depreciated over 30 years using the straight-line method. The company has applied for licenses to manufacture and sell CBD products, and they just heard that they have been approved for either non-THC CBD products

 ("Option A") or for medicinal marijuana (THC based products, 

"Option B"). They cannot pursue both product lines. The company has been approached by someone who is willing to rent the building for $48,000 per year for a lease term of 10 years. If the company decides to manufacture, they anticipate being in business for 10 years. At the end of the 10 years, it expects to rent the building to someone at the same rate specified above. When it suspends operations, it will need to restore the building back to an empty shell. This restoration cost can be deducted from income in the year the money is spent. For Option A, the company will have to invest $200,000 of capital expenditures to be depreciated over 10 years on a straight-line basis, will have to invest $75,000 of working capital (which can be recovered at the end of the project) and will have to spend $50,000 restoring the building in 10 years (which is tax deductible in that year). For this project, the company expects to sell $250,000 of products each year. For Option B, the company will have to invest $500,000 of capital expenditures to be depreciated over 10 years on a straight-line basis, will have to invest $125,000 or working capital (which can be recovered at the end of the project) and will have to spend $75,000 restoring the building in 10 years (which is tax deductible in that year). For this project, the company expects to sell $350,000 of products each year. In both Option A and Option B, the variable costs to manufacture products is 30% of sales, and fixed manufacturing costs (excluding depreciation) are expected to be $75,000 per year. The company's tax rate is 20% and its target (required) rate of return is 12%. Use the above information for all remaining questions. Enter all of your answers to nearest whole number. For financial answers, leave the dollar sign off. What is the net present value of renting the business (after tax)?