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Current Attempt in Progress Ivanhoe inc, manufactures ice tea and would like to increase its market share in the North. In order to do so,

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Current Attempt in Progress Ivanhoe inc, manufactures ice tea and would like to increase its market share in the North. In order to do so, Ivanhoe has decided to. Tocate a new factory in the Cedar Rapid area. Ivantoe will either buy or lease a site depending upon which is more advartageous. The site location committee has narrowed down the avallable sites to the following three buildings: Building A: Rurchase for a cash price of $1,549,000, usefuitife 26 years. Building B: Lease for 26 years with annual lease parments of $123,000 beting made at the buginning of the year. Butiding C. Purchase for 51,950000 cash. This buisding is larger than needed; hawever, the excess space can be sublet for 26 years at a net anmual rental of 520,700 . Rental payments will be received at the end of each year tvanhoe inc. has no aversion to being a landiord. Click hereto view tactor tables in which building would you fecommend that Ivanhoe ine locate, assuming a 10K cost of funds? (Round foctor values to 5 decimgl ploces, es. 1.25124 and final answers to 2 decimol places, e. 4,585.81. Ivanhue lne would locate in

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