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Miss Cookie Jams, a manufacturer of confectionaries, wants to increase its market share. In order to do so , Miss Cookie Jams has decided to

Miss Cookie Jams, a manufacturer of confectionaries, wants to increase its market share. In order to do so, Miss Cookie Jams has decided to locate a new factory along the east coast. Miss Cookie Jams 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 $610,600, useful life 26 years.
Building B: Lease for 26 years with annual lease payments of $71,980 being made at the beginning of the year
Building C: Purchase for $653,200 cash, and due to the building being larger than needed, the excess space can be sublet for 26 years at a net annual rental of $6,050. Rental payments will be received at the end of each year. Miss Cookie Jams has no aversion to being a landlord...
Which building would be reccomended for Miss Cookie Jams to locate? Assuming a 10% cost of funds?
Calculate the Net Present Value for each.

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