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Sunland, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Sunland currently warehouses its inventory in a public
Sunland, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Sunland currently warehouses its inventory in a public warehouse across town. Rent on the warehouse and delivering and picking up inventory cost Sunland $55680 per year. The building will cost Sunland $522000. Sunland will depreciate the building for 20 years. At the end of 20 years, the building will have a $145000 salvage value. Sunland's required rate of return is 11%. Click here to view the factor table. Using the present value tables, the build
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