Monty Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so$,$ Monty has decided to locate a new factory in the Cedar Rapid area. Monty 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 $$1,546,000,$ useful life $27$ years.

Building B: Lease for $27$ years with annual lease payments of $$125,000$ being made at the beginning of the year.

Building C: Purchase for $$1,955,000$ cash. This building is larger than needed; however, the excess space can be $27$ years at a net annual rental of $$18,300.$ Rental payments will be received at the end of each year. Monty Inc. has no aversion to being a landlord.

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In which building would you recommend that Monty Inc. locate, assuming a $11\%$ cost of funds? $($Round factor vilues to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $2$ decimal places, e$.$g$.4,585\mathrm{.}81.)$

Net Present Value

Building A $

Building B $

Building C $