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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

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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 warehouse across town. Rent on the warehouse and delivering and picking up inventory cost Sunland $45120 per year. The building will cost Sunland $423000. Sunland will depreciate the building for 20 years. At the end of 20 years, the building will have a $117500 salvage value. Sunland's required rate of return is 11%. Click here to view the factor table Using the present value tables, the building's net present value is (round to the nearest dollar) $902400 $373874 $ 49126. $18576

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