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Swifty Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so , Swifty has decided
Swifty Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so Swifty has decided to locate a new factory in the Cedar Rapid area. Swifty 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 $ useful life years. Building B: Lease for years with annual lease payments of $ being made at the beginning of the year. Building C: Purchase for $ cash. This building is larger than needed; however, the excess space can be sublet for years at a net annual rental of $ Rental payments will be received at the end of each year. Swifty Inc. has no aversion to being a landlord. Click here ta view factor tables In which building would you recommend that Swifty Inc. locate, assuming a cost of funds? Round factor values to decimal places, eg and final answers to decimal places, eg Net Present Value Building A $ Building B $ Building C $ Swifty Inc. would locate in
Swifty Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so Swifty has decided to locate a new factory in the Cedar Rapid area. Swifty 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 $ useful life years.
Building B: Lease for years with annual lease payments of $ being made at the beginning of the year.
Building C: Purchase for $ cash. This building is larger than needed; however, the excess space can be sublet for years at a net annual rental of $ Rental payments will be received at the end of each year. Swifty Inc. has no aversion to being a landlord.
Click here ta view factor tables
In which building would you recommend that Swifty Inc. locate, assuming a cost of funds? Round factor values to decimal places, eg and final answers to decimal places, eg
Net Present Value
Building A $
Building B $
Building C $
Swifty Inc. would locate in
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