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The Carla 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

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The Carla 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, Carla has decided to locate a new factory in the Panama City area. Carla 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 $615,000, useful life 28 years: Building B: Lease for 28 years with annual lease payments of $71,570 being made at the beginning of the year. Building C: Purchase for $659,900 cash. This building is larger than needed; however, the excess space can be sublet for 28 years at a net annual rental of $6,870. Rental payments will be received at the end of each year. The Carla Inc. has no aversion to being a landlord. Click here to view factor tables. In which building would you recommend that The Carla Inc. locate, assuming a 12% cost of funds? (Round foctor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, eg. 458,581.) TABLE 6.2 Present Value of 1 TABLE 6.1 Future Value of 1 (Future Value of a Single Sum) TABLE 6.1 Future Value of 1 TABLE 6.3 Future Value of an Ordinary Annuity of 1 TABLE 6.2 Present Value of 1 (Present Value of a Single Sum) TABLE 6.3 Future Value of an Ordinary Annuity of 1 TABLE 6.5 Present Value of an Annuity Due of 1 Building C: Purchase for $659,900 cash. This building is larger than needed; however, the excess space can be sublet for 28 years at a net annual rental of $6,870. Rental payments will be received at the end of each year. The Carla Inc. has no aversion to being a landlord. Click here to view factor tables. In which building would you recommend that The Carla Inc. locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places, e. 1.25124 and final answer to 0 decimal places, eg. 458,581.) The Carla inc should locate itself in TABLE 6.4 Present Value of an Ordinary Annuity of 1 TABLE 6.5 Present Value of an Annuity Due of 1 TABLE 6.4 Present Value of an Ordinary Annuity of 1

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