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need help in step B and C Sarasota Inc, manufactures ice tea and would like to increase its market share in the North. In order
need help in step B and C
Sarasota Inc, manufactures ice tea and would like to increase its market share in the North. In order to do so, Sarasota has decided to locate a new factory in the Cedar Rapid area. Sarasota 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 bulldings Building At Purchase for a cash price of $1.525,000, usetut life 27 years, Building B: Lease for 27 years with annual tease payments of $125,000 being made at the beginning of the year. Building C: Purchase for $1.952,000 cash. This building is targer than needed; however, the excess space can be sublot for 27 years at a net annual rental of $20.700. Rental payments will be received at the end of each year, Sarasota Inc has no version to beina landlord Click here to view factor tables in which building would you recommend that Sarasota Inc. locate, assuminga 11% cost of funds? (Round factor values to 5 decimal places, s. 1.25124 and final answer to 2 decimal places, es 4,585,81.) Net Present Value Building A $ 1525000 Buildings 5 1193475 In which building would you recommend that Sarasota Inc, locate assuming a 11% cost of funds? (Round foctor values to 5 decimal places, eg 1 25124 and final answer to 2 decimal places, 34,585.81.) Net Present Value Building A 1525000 Building $ 1193475 Building 597292 Sarasotain should locate itself in Building a Step by Step Solution
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