1.) The Tamarisk Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Tamarisk has decided to locate a new factory in the Panama City area. Tamarisk 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 very similar buildings that will meet their needs. Building A: Purchase for a cash price of $610,000, useful life 27 years. Building B: Lease for 27 years with annual lease payments of $70,500 being made at the beginning of the year. Building C: Purchase for $656,700 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,570. Rental payments will be received at the end of each year. The Tamarisk Inc. has no aversion to being a landlord. In which building would you recommend that The Tamarisk Inc. locate, assuming a 10% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

		Net Present Value
Building A
Building B
Building C

2.) $52,610 payable at the end of the seventh, eighth, ninth, and tenth periods at 11%

What is the Present Value?

3.) Marin Inc. has $652,920 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $97,304 at the end of each year for 10 years, and the other is to receive a single lump-sum payment of $2,027,870 at the end of the 10 years. Which alternative should Marin select? Assume the interest rate is constant over the entire investment.