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Current Attempt in Progress The Bramble Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the
Current Attempt in Progress The Bramble Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Bramble has decided to locate a new factory in the Panama City area. Bramble 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 very similar buildings that will meet their needs. Building A: Purchase for a cash price of $615,800, useful life 28 years. Building B: Lease for 28 years with annual lease payments of $71,850 being made at the beginning of the year. Building C: Purchase for $655,900 cash. This building is larger than needed; however, the excess space can be sublet for 28 years at a net annual rental of $6,850. Rental payments will be received at the end of each year. The Bramble Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that The Bramble Inc. locate, assuming a 11% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Building A $ Building B $ Building C $ Net Present Value The Bramble Inc. should locate itself in eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
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