Question 14 Kingbird, Inc., a manufacturer of low sugar, low.sodium, low-cholesterol TV dinners, would like to increase its market share in Western Canada. In order to do so, Kingbird has decided to locate a new factory in Kelowna, B.C. Kingbird 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. Bullding A: Purchase for a cash price of $600,000, useful le 25 years Buliding B: Lease for 25 years with annual lease payments of $65,000 being made at the beginning of the year. Building Purchase for 3650,000 cash. This building is targer than needed; however, the excess space can be sublet for 25 years at a net annual rental of $6,000. Rental payments will be received at the end of each year, Kingbird, Inc. has no version to being a landlord. Click here to view the factor table PRESENT VALUE 05. Click here to view the factor table PRESENT VALUL OF AN ANNUITY OF 1 Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE Calculate the net present value of three buildings, assuming a 10% cost of funds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to decimal places, 6.9. 5,275.) Net present value Building $ Building $ Building $ In which building would you recommend that Kingbird, Inc. locate? Kingbird, int should locate itself in SAVE FOR LATER SUBMIT ANSWER Question Attempts of 1 used