Logan, Inc

question 76

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.

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Definitions:

Cooperative

Involving mutual assistance in working toward a common goal, characterized by teamwork and collaboration.

Diplomatic

Having or showing an ability to deal with people in a sensitive and effective way.

Objective

An unbiased, unemotional statement or goal based on facts rather than feelings or opinions.

Peak Performer

An individual who consistently operates at their highest level of skill and performance in their respective field or endeavor.