Fantastic Flooring (FF) is a carpet wholesale company. FF is considering building a new inventory warehouse for $500,000. The warehouse would allow FF to increase their pre-tax cash flows by $100,000 each year. The company would plan to use the warehouse for 10 years before selling it for $200,000. The company uses straight-line depreciation. FFs tax rate is 20%, and the required rate of return is 10%.

What is the Net Present Value of the proposed investment?

Group of answer choices

$19,517.04

$105,541.02

($57,590.96)