Analysis of Alternatives Ch. 5 - Time Value of Money Inguinal Services, Corp. is looking for a new building to expand its production. After an exhaustive search, the following sites were leading contenders: 1. Building A: Purchase for $600,000 cash. 2. Building B: Lease for 25 years with annual lease payments of $69,000 made at the beginning of each year. 3. Building C: Purchase for $645,000 cash. Building has space that can be sublet for 25 years at a net annual rental of $7,000, received at the end of each of the 25 years. 4. Building D: Purchase with a note requiring 25 payments (made at the end of each of the 25 years) of $70,000 and a balloon payment of $600,000 at the end of the 25 year. 5. Building E: Purchase with $200,000 down and a note requiring payments of $45,000 made at the beginning of each of the next 25 years. Assume Inguinal will be buying one of these buildings on 1/1/19. Additionally assume each building has a useful life of 25 years and that the prevailing interest rate is 12%. Which building has the lowest cost? Write out the journal entry recording the purchase of that building. What would the cost of financing that building be