Homestead would provide a building to store supplies and would handle all recordkeeping. Homestead has a storage barn not currently in use. Shelving would be required for stacking the product, and a special concrete pad would be added for delivery truck access. The existing Homestead accountant would assume the additional accounting duties and receive an additional $5,000 per annum. Homestead would be paid a fee based on the volume of product stored.

Required:

Which of the following items is not a relevant consideration in deciding whether to establish a greenhouse supply warehouse?

1. Book value of the storage barn.

2. Cost of a special concrete pad.

3. Homestead accountant’s raise.

4. Projected volume of product for storage.