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6-12 show work Exercise 6-12 The Whispering Inc., a manufacturer of low sugar, low-sodium, low cholesterol TV dinners, would like to increase its market share
6-12 show work
Exercise 6-12 The Whispering 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, Whispering has decided to locate a new factory in the Panama City area, whispering 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 $619,600, useful life 26 years Building B: Lease for 26 years with annual lease payments of $70,510 being made at the beginning of the year Building Purchase for $650, 100 cash. This building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of $6.900. Rental payments will be received at the end of each year. The Whispering Inc. has no aversion to being a landlord Click here to view factor tables in which building would you recommend that The Whispering Inc. locate, assuming a 10% cost of hunda? (Round factor values to decimal places, c.9. 1.25124 and final answer to decimal places. 458.581.) Net Present Value Building A Building B $ Building The Whispering Inc. should locate itself in LE TO TEXT Step by Step Solution
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