Century Roofing Is Thinking of Opening a New Warehouse, and the Key

Century Roofing is thinking of opening a new warehouse, and the key data are shown below.The company owns the building that would be used, and it could sell it for $100, 000 after taxes if it decides not to open the new warehouse.The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value.No new working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life.What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)

A) $10, 521
B) $11, 075
C) $11, 658
D) $12, 271
E) $12, 885