Question: Pacific Rim, Inc., is considering opening a new warehouse to serve the northwest region. Darnell Florian, controller for Pacific Rim, has been reading about the advantages of FTZs. He wonders if locating in one would be of benefit to his company, which imports its merchandise from Asia. Darnell estimates that the new warehouse will store imported merchandise costing about $16.78 million per year. Inventory shrinkage at the warehouse (due to breakage and mishandling) is about 8 percent of the total. The average tariff rate on these imports is 5.5 percent