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

Sandhill, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Sandhill currently warehouses its inventory in a public warehouse across town. Rent on the warehouse and delivering and picking up inventory cost Sandhill $57600 per year. The building will cost Sandhill $540000. Sandhill will depreciate the building for 20 years. At the end of 20 years, the building will have a $150000 salvage value. Sandhills required rate of return is 12%.

Using the present value tables, the buildings net present value is (round to the nearest dollar)

$1152000.

$-94208.

$430237.

$-109763.

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