The Blah Blah Blah (BBB) company is an online retailer.You have been hired as the company's new Director of Finance.On your first day at work, you are call into the Management Team meeting.BBB is evaluating building a new $50 million warehouse facility.The facility is expected to have an economic life of 25 years and at that time, it is estimated,the facilities will be sold for $188,895.The building will be depreciated with a CCA of 20%.There are no other depreciable assets for this investment.Inventory held in the facility will be approximately 10% of the next year's sales.There will be no other effect to Working Capital.

Sales from the new facilities are expected to be $30 million per year and are expected to grow at 3% annual.Contribution Margin is expected to be maintained at 25%.Fixed costs, excluding depreciation, is expected to be $1.5 million.These costs are expected to grow inline with inflation at 2%.