Pharoah Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so, Pharoah has decided to locate a new factory in the Cedar Rapid area. Pharoah will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three buildings: Building A: Purchase for a cash price of $1,531,000, useful life 26 years. Building B: Lease for 26 years with annual lease payments of $123,000 being made at the beginning of the year. Building C: Purchase for $1,959,000 cash. This building is larger than needed; however, the excess space can be sublet for 26 years at a net annual rental of $19,300. Rental payments will be received at the end of each year. Pharoah Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that Pharoah Inc. locate, assuming a 11% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 4,585.81.) Building A $ Building B $ Building C $ Net Present Value Pharoah Inc. would locate in 1,531,000 Building B