The company will either buy or lease a site depending on which is more advantageous. Calculate the present value of each of the following 3 scenarios and make a recommendation to Close Knit assuming an interest rate of 12%.

a. Building A Purchase for a cash price of $600,000, useful life is 25 years

b. Building B Lease for 25 years with annual lease payments of $69,000 being made at the beginning of each year

c. 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, and Close Knit has no aversion to being a landlord.