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The Coronado 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
The Coronado 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. Coronado has decided to locate a new factory in the Panama City area. Coronado 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 tile beginning of the year. Building C: Purchase for $659,900 cash. This bullding is larger than needed; however the excess space can be sublet for 28 years at a net annual rental of 56,870. Rental payments will be received at the end of each year. The Coronado Inc. has no aversion to being a landlord. Click here to view factor tables in which bullding would you recommend that The Coronado Inc, locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places.es. 1.25124 and final answer to decimal places es 458,581.) Net Present Value Building A $ Bullding B $ Building C $ The Coronado Inc. should locate itself in
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