Benson Enterprises is evaluating alternative uses for a three-story manufacturing and warehousing building that it has purchased for $1,530,000.

Benson Enterprises is evaluating alternative uses for a three-story manufacturing and warehousing building that it has purchased for $1,530,000. The company can continue to rent the building to the present occupants for $69,000 per year. The present occupants have indicated an interest in staying in the building for at least another 15 years. Alternatively, the company could modify the existing structure to use for its own manufacturing and warehousing needs. Benson's production engineer feels the building could be adapted to handle one of two new product lines. The cost and revenue data for the two product alternatives are as follows: