Your company owns a warehouse it doesn't use. Instead, the company rents it out to another firm. At the end of this next year, the rents will total $$85,000.$ Recently, that annual rent has been rising about $3\mathrm{.}0\%$ to keep up with inflation.

In a general meeting of managers of your firm, you hear this:

ISHA: There is nothing in our foreseeable plans that calls for us to use this warehouse. It's an unused asset. The rents are nice, but we don't need it$.$ Owning this has nothing to do with our core business.

CAROL: You're right. We don't need this warehouse. But the rents are substantial. And it's likely not worth all that much in a sale. We all know how real estate values are depressed these days.

You understand that this doesn't have to be a debate. A basic analysis of the potential cash flows, using some time value tools, can indicate which decision is best for the firm $($where "best" means the most valuable in terms of money$).$

After some research, you have an estimate for a sale price of the warehouse: $$460,000.$ Your firm will likely get that in one year. The rental cash flows are relevant for six years. Your firm uses a required return of $9\mathrm{.}0\%$ for evaluating capital projects like this.

So which is best? Selling the warehouse or holding onto it for six more years?

To get an answer here, subtract the value of the rental cash flows from the value of the warehouse sale. Enter that number as a regular dollar amount, rounded to the nearest whole dollar. Do not enter dollar signs, percent signs, or commas. If Connect adds those things, that's okay. If you calculate a true negative number, use a negative sign.

For example, if you calculated $$4,099\mathrm{.}821,$ you would enter $4100.$ Or if you calculated $$345\mathrm{.}34,$ you would enter $345.$