Question: Current Attempt in Progress Oriole, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Oriole currently warehouses its

 Current Attempt in Progress Oriole, Inc. is considering the purchase of

Current Attempt in Progress Oriole, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Oriole currently warehouses its inventory in a public warehouse across town. Rent on the warehouse and delivering and picking up inventory cost Oriole $42240 per year. The building will cost Oriole $396000. Oriole will depreciate the building for 20 years. At the end of 20 years, the building will have a $110000 salvage value. Oriole'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) $844800. $20040. $375960. \$-5854

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