CELORLATO PINTA VELO Problem 6-10 Carta Inc. owns and courtes a number of hardware stores in the New England region. Recently, the company has decided to locate another store in taidly growing area of Maryland. The company in to decide whether to purchase or was the building and related fcnties Purchase the company can purchase the site, construct the building, and purchase all store futures. The cost would be $1,650.800. An immediate down payment of $414,900 required, and the remaining the owner of the property, the company will have the following out-of-pocket expenses each period 11.405.000 would be paid off over 5 years 358.100 per year including interest payments made at end of year). The property is expected to have a useful ate of 12 years, and then it will be sold for 05,200 A Property taxes to be paid at the end of each year) $40,570 Insurance (to be paid at the beginning of each year) 26,800 Other (primarily maintenance which occurs at the end of each year) 16,850 $84,220 Los Pirst National Banketus agreed to urchase the site contred the building and install the appropriate fixtures for Carin Care will be the completed facility for 12 years. The annual costs for the would be $352,160, Carla would have no reconsibility related to the facility over the 12 Wars The term of the lower that cara derred to make 12 annual payments the first yet to be made the time the store opens and then each following year). In adation, a deposit of $93.200 is required when the stomped This depot be returned at the end of the 12th year, auming no unito contage to the buting structure or futures Gotovin fact tables Compute the present value of case vs puchse (currently, the cost of funds for Cariate wo) (Rount factor volutos decimal ca. 1.25124 and final answer to decimales... 458881.) Purchase Which of the two proaches should Cars in follow Cara Ine should curse the fact