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 $2,600,000 cash. this building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of $24,000. rental payments will be received at the end of each year. The Black-knight Inc. has no objection to being a landlord. - building B: purchase for a cash price of $2,440,000, useful life 25 years. - building C: lease for 25 years with annual lease payments of $280,000 being made at the beginning of the year.

instruction: in which building would you recommend that Black-knight Inc. locate, assuming a 12% cost of funds?