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Culver Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so , Culver h s

Culver Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so, Culver hs decided to locate a new factory in the Cedar Rapid area. Culver 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 $1,531,000, useful life 26 years.
Building B: Lease for 26 years with annual lease payments of $123,000 being made at the beginning of the year.
Building C: Purchase for $1,959,000 cash. This building is larger than needed; however, the excess space can be sublet for 26 years at a net annual rental of $19,300. Rental payments will be received at the end of each year. Culver Inc. has no aversion to being a landlord.
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In which building would you recommend that Culver Inc. locate, assuming a 11% cost of funds? (Round factor values to 5 decimal places, e.g.1.25124 and final answers to 2 decimal places, e.g.4,585.81.)
Net Present Value
Building A$
Building B $
Building C $
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