Logan, Inc

Multiple Choice

Logan, Inc.is considering the purchase of a warehouse directly across the street from its manufacturing plant.Logan currently warehouses its inventory in a public warehouse across town.Rent on the warehouse and delivering and picking up inventory cost Logan $48,000 per year.The building will cost Logan $450,000.Logan will depreciate the building for 20 years.At the end of 20 years, the building will have a $125,000 salvage value.Logan's required rate of return is 10%.Using the interest tables, the building's net present value is

A) ($41,347) .
B) ($22,772) .
C) $427,228.
D) $960,000.