The XYZ Company has a choice between two warehouses. A lease at location A costs $12,000 per year with a payment of $200
Posted: Fri Jul 01, 2022 9:05 am
The XYZ Company has a choice between two warehouses. A lease atlocation A costs $12,000 per year with a payment of $2000 up frontto guarantee the 3 year lease (Periods 0, 1 and 2). Location Bwould cost $14,400 per year and would be leased from year to year.The anticipated revenue in either location is $18,000 per year. Theestimated rate of return (discount rate) is 10% per year. What isthe net present value (NPV) of the expected Annual Profit forlocation A? Round your answer to the nearest dollar.