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The Bonita Inc, a manufacturer of low-5ugar, low-50dium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do

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The Bonita Inc, a manufacturer of low-5ugar, low-50dium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Bonita has decide, to locate a new factory in the Panama City area. Bonita 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 buildings that will meet their needs. Building A: Purchase for a cash price of $614,400, useful life 27 years. Building B: Lease for 27 years with annual lease payments of $71.660 being made at the beginning of the year. Building C: Purchase for $651,400 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,980. Rental payments will be received at the end of each year. The Bonita Inc. has no aversion to being a landlord. Click here to view tactor tables. In which building would you recommend that The Bonita inc. locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places, es. 1.25124 and final answer to 0 decimal ploces, es. 458.581.)

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