(Analysis of Alternatives) The Black Knights Inc., a manufacturer of E3.6 (LO 4) low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in Western Canada. To do so, Black Knights has decided to locate a new factory in Kelowna, B.C. Black Knights will either buy or lease a site, depending on which is more advantageous. The site location committee has narrowed down the available sites to the following three buildings: Building A: Purchase for a cash price of $600,000, useful life 25 years. Building B: Lease for 25 years with annual lease payments of $69,000 being made at the beginning of the year. Building C: Purchase for $650,000 cash. This building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of $7,000. Rental payments will be received at the end of each year. Black Knights has no aversion to being a landlord. Instructions In which building would you recommend that Black Knights locate, assuming a 12% cost of funds? For Buildings B and C, calculate using (a) the present value table, (b) a financial calculator, or (c) Excel function PV