Bell Co., a manufacturer of aluminum water bottles, would like to increase its market share in South America. In order to do so, Bell has decided to locate a new factory near Buenos Aires. Bell will either buy or lease a site depending upon which is more financially advantageous. The site location committee has narrowed down the available sites to the following three buildings that will meet the company's needs. Verde Building: Purchase using a long-term loan (mortgage) requiring annual payments of $95,000 at the end of each of the next 30 years. Annual maintenance cost for the building to be paid by Bell will amount to $10,000 and will be paid at the end of each of the 30 years under the terms of a contract to be signed with a maintenance company. Bell will also be responsible for payment of insurance and taxes on the building totaling $7,000 per year for the 30 year period payable at the beginning of each year. Rojo Building: Purchase using a long-term loan (mortgage) requiring annual payments of $125,000 at the end of each of the next 30 years. Annual maintenance cost for the building to be paid by Bell will amount to $17,500 and will be paid at the end of each of the 30 years under the terms of a contract to be signed with a maintenance company. Bell will also be responsible for payment of insurance and taxes on the building totaling $11,000 per year for the 30 year period payable at the beginning of each year. This building is much larger than Bell will need, so the company will be renting out a portion of the building to an existing tenant. Bell will receive rental payments of $45,000 at the beginning of each of the 30 years with the first rental payment received on the day Bell purchases the building. Azure Building: Bell would lease this building for 30 years from the owner for an annual lease payment of $130,000 with the first lease payment due at the time Bell signs the lease. The existing owner would remain responsible for all maintenance, insurance and property taxes on the building. Instructions: In which building would you recommend that Bell Co. locate, assuming a 5% cost of funds