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The ayayai Inc. The Ayayal inc, a manufacturer of low-sugar, low:sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbeit in
The ayayai Inc.
The Ayayal inc, a manufacturer of low-sugar, low:sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbeit in order to do so, Ayayai has decided to locate a new factory in the Panama City area. Ayayai 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 bulidines that will meet their needs. Building A: Purchase for a cash price of \\( \\$ 610,000 \\), useful life 27 years: Bullding B: Lease for 27 years with annual lease payments of \\( \\$ 71,570 \\) being made at the besinning of the year: Building C: Purchase for \\( \\$ 650,800 \\) cash. This building is larger than peeded: however, the excess space can be sublet for 27 years at a net annual rental of \\( \\$ 6,890 \\). Rental payments will be recelved at the end of each year. The Ayayal lac has no aversion ta being a landiord. Clickhere to view factor tables In which building would you recommend that The Avayai Inc locate. assuming a 1116 cost of funds? (Round foctor values to 5 docinal places es. 125124 and final answer to 0 decimol ploces \\( 29.458,581 \\) ) Step by Step Solution
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