united pigpen is considering a proposal to manufacture high-protein hog feed. the project would make use of an existing warehouse,which is currently rented out to a neighboring firm. the next year's rental charge on the warehouse is $100,000, and thereafter the rent is expected to grow in line with inflation at 4% a year. in addition to using the warehouse, the proposal envisages an investment in plant and equipment of $1.2 million, this could be depreciated for tax purposes straight-line over 10 years. however,pigpen expects to terminate the project at the end of eight years and to resell the plant and equipment in year 8 for $