a.610,000 27y

b.27y 71,570

c.650,800 27y 6,890

11%

The Ayayai 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, Ayayai has decided to locate a new factory in the Panama City area. Ayayai 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 \\( \\$ 71,570 \\) being made at the beginning of the year. Building C: Purchase for \\( \\$ 650,800 \\) cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of \\( \\$ 6,890 \\). Rental payments will be received at the end of each year. The Ayayailinc has no aversion to being a landiord. Click here to view factor tables In which building would you recommend that The Ayayai Inc locate, assuming a \11 cost of funds? (Round factor values to 5 decimal ploces es. 1.25124 and final answer to 0 decimal ploces eg. 458.581) The Ayayai Inc. should locate itself in