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The Black Knights 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

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The Black Knights 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, Black Knights has decided to locate a new factory in the Panama City area. Black Knights 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 $600, 000, useful life 25 years. Building B: Lease for 25 years with annual lease payments of $69, 000 being made at the beginning of the year. Building C: Purchase for $650, 000 cash. This building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of $7, 000. Rental payments will be received at the end of each year. The Black Knights Inc. has no aversion to being a landlord

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