Bonita Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so$,$ Bonita has decided to locate a new factory in the Cedar Rapid area. Bonita 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 buildings:

Building A: Purchase for a cash price of $$1,525,000,$ useful life $27$ years.

Building B: Lease for $27$ years with annual lease payments of $$123,000$ being made at the beginning of the year.

Building C: Purchase for $$1,970,000$ cash. This building is larger than needed; however, the excess space can be sublet for $27$ years at a net annual rental of $$19,700.$ Rental payments will be received at the end of each year. Bonita Inc. has no aversion to being a landlord.

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In which building would you recommend that Bonita Inc. locate, assuming a $10\%$ cost of funds? $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $2$ decimal places, e$.$g$.4,585\mathrm{.}81.)$

Net Present Value

Building A $

Building B $

Building C $