5. JB Co., a manufacturer of compostable garbage bags, would like to increase its market share in the Midwest. In order to do so, JB has decided to locate a new factory near St. Louis. JB 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 $49,500,000, useful life 25 years. Maintenance cost for the building will amount to $750,000 and will be paid at the end of each year under the terms of a contract to be signed with a maintenance company. Building B: Lease for 25 years with annual lease payments of $4,750,000 being made at the beginning of each year. Maintenance is included in the lease payment. Building C: Purchase for $77,500,000 cash. This building is larger than needed; however, the excess space can be rented to a tenant for 25 years at an annual rental of $2,600,000. Rental payments will be received at the end of each year. JB Co. has no aversion to being a landlord. Maintenance cost for the building will amount to $900,000 and will be paid at the end of each year under the terms of a contract to be signed with a maintenance company. Instructions: In which building would you recommend that JB Co. locate, assuming a 7% cost of funds?