pls answer

The Blossom 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, Blossom has decided to locate a new factory in the Panama City area. Blossom 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 $ 618,900, useful life 27 years. Building B: Lease for 27 years with annual lease payments of $ 71.820 being made at the beginning of the year. Building C: Purchase for $ 652,700 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $ 6,430. Rental payments will be received at the end of each year. The Blossom Inc. has no aversion to being a landlord Click here to view factor tables In which building would you recommend that The Blossom Inc. locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places, c.9. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Net Present Value Building A $ Building B $ Building C $ Building C Building B Building A The Blossom Inc. should locate itself in TABLE 6.2 Present Value of 1 (Present Value of a Single Sum) 1 PVF (1+1)" = (1 + 1) no Periods 2% 2%% 3% 4% 1 .98039 97561 97087 96154 2 96117 95181 94260 92456 94232 92860 .91514 88900 .92385 90595 .88849 .85480 90573 88385 .86261 82193 5% 95238 90703 .86384 82270 .78353 6% 94340 89000 83962 .79209 .74726 6 7 8 9 10 88797 .87056 .85349 .83676 .82035 .88230 .84127 82075 .80073 .78120 .83748 .81309 .78941 .76642 .74409 .79031 .75992 .73069 .70259 67556 .74622 .71068 67684 64461 .61391 .70496 66506 .62741 .59190 .55839 11 12 13 14 15 .80426 .78849 .77303 .75788 .74301 .76214 .74356 .72542 .70773 .69047 .72242 .70138 .68095 66112 .64186 64958 .62460 60057 .57748 55526 58468 55684 53032 50507 48102 52679 .49697 46884 ,44230 41727 16 17 18 19 20 .72845 .71416 .70016 .68643 .67297 67362 .65720 64117 .62553 .61027 .62317 .60502 58739 .57029 55368 53391 51337 49363 47464 45639 .45811 .43630 .41552 39573 37689 39365 37136 35034 33051 31180 21 22 23 24 25 .65978 .64684 .63416 .62172 .60953 59539 .58086 56670 55288 53939 53755 .52189 .50669 49193 47761 .43883 42196 40573 .39012 37512 35894 34185 32557 31007 29530 29416 27751 26180 24698 23300 28 27 28 29 30 59758 58586 57437 56311 55207 52623 51340 50088 48866 47674 46369 .45019 43708 42435 41199 36069 34682 33348 -32065 30832 28124 26785 25509 24295 23138 21981 20737 .19563 -18456 17411 31 32 33 34 35 54125 53063 52023 51003 50003 .46511 45377 44270 43191 42137 -39999 38834 37703 36604 35538 29846 28506 27409 26355 25342 22036 20987 .19987 .19035 18129 .16425 15496 14619 .13791 .13011 36 37 38 39 40 49022 48061 47119 46195 45289 41109 40107 39128 38174 37243 34503 33498 32523 31575 30656 24367 23430 22529 21662 .17266 -16444 15661 14915 14205 12274 . 11579 10924 .10306 .09722 20829 TABLE 6.2 Present Value of 1 8% .92593 85734 .79383 .73503 .68058 9% 91743 .84168 .77218 .70843 .64993 10% 90909 .82845 .75132 .68301 .62092 11% 90090 81162 .73119 .65873 .59345 12% B9286 .79719 71178 .63552 .56743 15% .86957 .75614 .65752 57175 .49718 m Periods 1 2 3 4 5 .63017 .58349 54027 -50025 .46319 59627 .54703 .50187 46043 42241 56447 51316 46651 42410 .38554 .53464 48166 .43393 39092 35218 50663 .45235 .40388 36061 32197 .43233 37594 32690 28426 24719 6 7 8 9 10 42888 39711 36770 34046 31524 .38753 35554 32618 29925 27454 35049 31863 28966 26333 23939 31728 28584 25751 23199 20900 28748 25668 22917 20462 .18270 21494 .18691 -16253 .14133 .12289 11 12 13 14 15 29189 27027 25025 23171 21455 25187 23107 21199 19449 17843 21763 .19785 .17986 .16351 14864 18829 .16963 .15282 .13768 -12403 .16312 .14564 .13004 .11611 10367 10687 .09293 .08081 .07027 .06110 16 17 18 19 20 19866 18394 17032 15770 14802 16370 .15018 .13778 .12641 .11597 .13513 .12285 .11168 .10153 09230 .11174 .10067 .09069 08170 07351 .09256 .08284 .07379 06588 ,05882 .05313 .04620 04017 03493 .03038 67898 HUBEB BHBa88%%8wm8 21 22 23 24 25 13520 12519 .11591 10733 LAM 10839 09761 CB994 08216 07537 .08391 .07628 08934 06304 05731 .06631 05974 .05382 .04849 04368 .05252 04689 .04187 .03738 03338 .02642 .02297 01997 01737 .01510 26 27 28 29 30 C-02 DE520 1078 07305 06763 06915 2014 05820 CS140 04890 05210 04736 04306 03914 03558 .03935 03545 03194 27 02592 02980 02661 02376 02121 01894 01313 .01142 00993 00864 .00751 31 32 33 34 35 04494 04123 08262 05799 05360 Olg 04603 03235 02941 02674 02430 02210 02335 02104 Q126 01708 .01538 01691 01510 01348 01204 01075 .00653 L00568 00494 00429 00373 03470 03184 TABLE 6.3 Future Value of an Ordinary Annuity of 1 FVF-OA, (1+1)" - 1 on) Periods 2% 2%% 3% 4% 1 1.00000 1.00000 1.00000 1.00000 2 2.02000 2.02500 2.03000 2.04000 3 3.06040 3.07563 3.09090 3.12160 4 4.12161 4.15252 4.18363 4.24646 5 5.20404 5.25633 5.30914 5.41632 5% 1.00000 2.05000 3.15250 4.31013 5.52563 6% 1.00000 2.06000 3.18360 4.37462 5.63709 6 7 8 9 10 6.30812 7.43428 8.58297 9.75463 10.94972 6.38774 7.54743 8.73612 9.95452 11.20338 6.46841 7.66246 8.89234 10.15911 11.46338 6.63298 7.89829 9.21423 10.58280 12.00611 6.80191 8.14201 9.54911 11.02656 12.57789 6.97532 8.39384 9.89747 11.49132 13.18079 11 12 13 14 15 12.16872 13.41209 14.68033 15.97394 17.29342 12.48347 13.79555 15.14044 16.51895 17.93193 12.80780 14.19203 15.61779 17.08632 18.59891 13.48635 15.02581 16.62684 18.29191 20.02359 14.20679 15.91713 17.71298 19.59863 21.57856 14.97164 16.86994 18.88214 21.01507 23.27597 16 17 18 19 20 18.63929 20.01207 21.41231 22.84056 24.29737 19.38022 20.86473 22.38635 23.94801 25.54466 20.15688 21.76159 23.41444 25.11687 26.87037 21.82453 23.69751 25.64541 27.67123 29.77808 23.65749 25.84037 28.13238 30.53900 33.06595 25.67253 28.21288 30.90565 33.75999 36.78559 21 22 23 24 25 25.78332 27.29898 28.84496 30.42186 32.03030 27.18327 28.86286 30.58443 32.34904 34.15776 28.67649 30.53678 32.45288 34.42647 36.45926 31.96920 34.24797 36.61789 39.08260 41.64591 35.71925 38.50521 41.43048 44.50200 47.72710 39.99273 43.39229 46.99583 50.81558 54.86451 26 27 28 29 30 33.67091 35.34432 37.05121 38.79223 40.5680B 36.01171 37.91200 39.85980 41.85630 43.90270 38.55304 40.70963 42.93092 45.21885 47.57542 44.31174 47.08421 49.96758 52.96629 56.08494 51.11345 54.66913 58.40258 62.32271 66.43885 59.15638 63.70577 68.52811 73.63980 79.05819 31 32 33 34 35 42.37944 44.22703 46.11157 48,03380 49.99448 46.00027 48.15028 50.35403 52.61289 54.92821 50.00268 52.50276 55.07784 57.73018 80.46208 59.32834 62.70147 66.20953 69.85791 73.65222 70.76079 75 29683 80.06377 85.00090 90.32031 84.80168 90.88978 97 34316 104.18376 111.43478 36 37 38 39 40 51.99437 54.03425 56.11494 58.23724 60.40198 57.30141 59.73395 62.22730 64.78298 67.40255 63 27594 06.17422 69.15045 72.23423 75.40126 77.50831 81.70225 85 97034 90.40915 95.02552 95.83632 101.62814 107.70955 114.09502 120.79977 110.12087 127.25812 135.90421 145.05846 154.76197 TABLE 6.3 Future Value of an ordinary Annuity of 1 m Periods 8% 1.00000 2.08000 3.24640 4.50611 5.86660 9% 1.00000 2.09000 3.27810 4.57313 5.98471 10% 1.00000 2.10000 3.31000 4.64100 6.10510 11% 1.00000 2.11000 3.34210 4.70973 6.22760 12% 1.00000 2.12000 3.37440 4.77933 6.35285 15% . 1.00000 2.15000 3.47250 4.99338 6.74238 2 3 4 5 6 7 8 7.33592 8.92280 10.63663 12.48756 14.48656 7.52334 9.20044 11.02847 13.02104 15.19293 7.71561 9.48717 11.43589 13.57948 15.93743 7.91286 9.78327 11.85943 14.16397 16.72201 8.75374 11.06680 13.72682 16.78584 20.30372 8.11519 10.08901 12.29969 14.77566 17.54874 10 16.54549 18.97713 21.49530 24.21492 27.15211 17.56029 20.14072 22.95339 26.01919 29.36092 18.53117 21.38428 24.52271 27.97498 31.77248 19.56143 22.71319 26.21164 30.09492 34,40536 20.65458 24.13313 28.02911 32.39260 37.27972 24.34928 29.00167 34.35192 40.50471 47.58041 11 12 13 14 15 30.32428 33.75023 37.45024 41.44626 45.75196 33.00340 36.97371 41.30134 46.01846 51.16012 35.94973- 40.54470 45.59917 51.15909 57 27500 39.18995 44.50084 50.39593 56.93949 64,20283 42.75328 48.88367 55.74972 63.43968 72.05244 55.71747 65.07509 75.83636 88.21181 102.44358 16 17 18 19 20 50.42292 55.45676 80.89330 TEA 73.10594 56.78453 62.87334 69.53194 76.78981 84.70080 64.00250 71.40275 79.54302 88.49733 98.34706 72.26514 81.21431 91.14788 102.17415 114.41331 81.69874 92.50258 104.60289 118.15524 133.33387 118.81012 137.63164 159 27638 184.16784 212.79302 21 22 23 24 25 79.95442 87 35077 95.33883 103-96694 11328321 83.32398 102.72314 112 THE 124.13536 136.30754 109.18177 121.09994 134 20994 148.63093 164 49402 127.99877 143.07864 159.81729 178.39719 199.02088 150.33393 169.37401 190.69889 214.58275 241.33268 245.71197 283.56877 327.10408 377.16969 434.74515 26 27 28 29 30 123.34587 134 21354 145.95062 158,62667 12.33 149.57522 184 03600 179 80032 196.98234 215.71070 181.94343 201.13777 222 25154 245.47670 27102437 221.91317 247 32362 275.52922 306.83744 341.58955 271.29261 304.84772 342 42945 384.5.2008 431.66350 500 95692 577.10046 644.66553 765.36535 881.17016 31 32 33 34 35 167.10215 203.07032 220 31595 238.94122 250.05652 236.12472 258.37595 202.62978 309 08646 337.88245 299.12681 33003049 364 04343 401.44778 442 59256 380.16441 422 08240 470.51056 523.26673 581.82607 484.46312 543.50669 609.83053 684.01020 TET162 1014.34568 1167.49753 1343.62216 1546.16549 1779.09031 36 37 38 39 40 TABLE 6.4 Present Value of an ordinary Annuity of 1 1 1 - PVF-OA, (1 + 1 () Periods 2% 27% 3% 4% 1 98039 .97561 .97087 96154 2 1.94156 1.92742 1.91347 1.88609 3 2.88388 2.85802 2.82861 2.77509 4 3.80773 3.76197 3.71710 3.62990 5 4.71346 4.64583 4.57971 4.45182 5% 95238 1.85941 2.72325 3.54595 4.32948 6% 94340 1.83339 2.67301 3.46511 4.21236 6 7 8 9 10 5.60143 6.47199 7.32548 8.16224 8.98259 5.50813 6.34939 7.17014 7.97087 8.75206 5.41719 6.23028 7.01969 7.78611 8.53020 5.24214 6.00205 6.73274 7.43533 8.11090 5.07569 5.78637 6.46321 7.10782 7.72173 4.91732 5.58238 6.20979 6.80169 7.36009 11 12 13 14 15 9.78685 10.57534 11.34837 12.10625 12.84926 9.51421 10.25776 10 98319 11.69091 12.38138 9.25262 9.95400 10.63496 11.29607 11.93794 8.76048 9.38507 9.98565 10.56312 11.11839 8.30641 8.86325 9.39357 9.89864 10.37966 7.88687 8.38384 8.85268 9.29498 9.71225 16 17 18 19 20 13.57771 14.29187 14.99203 15.67846 16.35143 13.05500 13.71220 14.35336 14.97889 15.58916 12.56110 13.16612 13.75351 14.32380 14.87747 11.65230 12.16567 12.65930 13.13394 13.59033 10.83777 11.27407 11.68959 12.08532 12.46221 10.10590 10.47726 10.82760 11.15812 11.46992 21 e78sw"mbHB9mmmm88 23 24 25 17.01121 17.65805 18 29220 18.91393 19.52346 16.18455 16.76541 17.33211 17.88499 18.42438 15.41502 15.93692 16.44361 16.93554 17.41315 14.02916 14.45112 14.85684 15.24896 15.62208 12.82115 13.16300 13.48857 13.79864 14.09394 11.78408 12.04158 12.30338 12.55036 12.78336 20.12104 20.70690 21 28127 21.84438 22.39646 18.05061 19.46401 19.90489 20.45355 20.93029 17.87684 18.32703 18.76411 19.18845 19.60044 15.98277 16.32959 16.66308 16.98371 17.29203 14.37519 14.64303 14.89813 15.14107 15.37245 13.00317 13.21053 13.40616 13,59072 13.76483 30 31 33 34 35 22.93770 22.46833 23.98856 24.49859 24 99862 21.39541 21.84018 22 29188 22.72370 23.14516 20.00043 20.38877 20.76579 21.13184 21.48722 17.58849 17.87355 18.14765 18.41120 18.66461 15.59281 15.80258 16.00255 16.10290 16.37419 13.92909 14.08404 14.23023 14.36814 14.49825 36 37 38 30 25.48884 25.96945 26.44064 26 80259 27.35548 23.55625 23.95732 24 34850 24.73034 25.10278 21.83225 22.16724 22.49246 22.80822 23.11477 18.90828 19.14258 19.36786 19.58448 19.79277 16.54685 16.71129 16.BD799 17.01704 17.15909 14.62099 14.73678 14.84602 14.04907 15.04630 TABLE 6.4 Present Value of an Ordinary Annuity of 1 8% 92593 1.78326 2.57710 3.31213 3.99271 9% .91743 1.75911 2.53130 3.23972 3.88965 10% 90909 1.73554 2.48685 3.16986 3.79079 11% 90090 1.71252 2.44371 3.10245 3.69590 12% .89286 1.69005 2.40183 3.03735 3.60478 15% .86957 1.62571 2.28323 2.85498 3.35216 Periods 1 2 3 5 6 7 8 4.62288 5.20637 5.74664 6.24689 6.71008 4.48592 5.03295 5.53482 5.99525 6.41766 4.35526 4.86842 5.33493 5.75902 6.14457 4.23054 4.71220 5.14612 5.53705 5.88923 3.78448 4.16042 4.48732 4.77158 5.01877 4.11141 4.56376 4.96764 5.32825 5.65022 7.13896 7.53608 7.90378 B.24424 8.55948 6.80519 7.16073 7.48690 7.78615 8.06069 6.49506 6.81369 7.10336 7.36669 7.BC606 6.20652 6.49236 6.74987 6.98187 7.19087 5.93770 6.19437 6.42355 6.62817 6.81086 5.23371 5.42062 5.58315 5.72448 5.84737 6.85137 9.12184 9.37189 9.60360 9.81815 8.31256 8.54363 8.75563 8.95012 9.12855 7.82371 8.02155 8.20141 8.36492 8.51356 7.37916 7.54879 7.70162 7.83929 7.96333 6.97399 7.11963 7.24967 7.36578 7.46944 5.95424 6.04716 6.12797 6.19823 6.25933 10.01680 10.20074 10.37106 10.52878 10.67478 9.20224 9.44243 9.58021 9.70861 9.82258 8.64869 8.77154 8.88322 8.98474 9.07704 8.07507 8.17574 8.26643 8.34814 8.42174 7.56200 7.64465 7.71843 7.78432 7.84314 6.31246 6.35866 6.39884 6.43377 6.46415 H29EBB %%8m 10.80990 10.93516 11.05108 11.15841 11.25778 8.92897 10.02858 10.11613 10.19826 10 27366 9.16095 9.23722 9.30657 9.30961 9.42091 8.48806 8.54780 8.60162 8.65011 8.89379 7.89566 7.94255 7.98442 8.02181 8.05518 6.49056 6,51353 6.53351 6,55088 6.56598 11.34080 11.43500 11.51389 11.58083 11.45 10.34280 10.40624 10.46444 10.51784 10.58682 0.47001 9.52638 0.56943 FIRO4 9.64416 8.73315 8.76860 8.80054 3.82932 3.85524 8.08499 8.11159 8.13535 8.15656 B.17550 6.57911 6.59053 5.80046 6.60910 6.61661 11.71710 11.77518 118 11.87856 11.92461 10.61176 10.65299 10.69082 10.72552 10.75736 9.67651 9.70592 9.73205 97SEN 9.75 8 67859 SWG3 8.91859 8.93567 8.95106 8.19241 8.20751 8.22099 8.23303 B.24378 6.62314 5.82882 6.63375 6.63805 6.84178 36 37 38 40