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

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Ivanhoe, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Ivanhoe currently warehouses its inventory in a public warehouse across town. Rent on the warehouse and delivering and picking up inventory cost Ivanhoe $51840 per year. The building will cost Ivanhoe $486000. Ivanhoe will depreciate the building for 20 years. At the end of 20 years, the building will have a $135000 salvage value Ivanhoe's required rate of return is 10% Click here to view the factor table Using the present value tables, the building's net present value is (round to the nearest dollar) $461406. O $-7185. $1036800 O $-24594

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