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The Grouper 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 Grouper 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, Grouper has decided to locate a new factory in the Panama City area. Grouper 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 $611,000, useful life 25 years. Building B: Lease for 25 years with annual lease payments of $71.370 being made at the beginning of the year. Building C: Purchase for $657,400 cash. This building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of $6,800. Rental payments will be received at the end of each year. The Grouper Inc. has no aversion to being a landlord. Clickhere to viewfactor tables. In which building would you recommend that The Grouper Inc. locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places, eg. 1.25124 and final answer to O decimal ploces, es. 458,581.) Building A: Purchase for a cash price of $611,000, useful life 25 years. Building B: Lease for 25 years with annual lease payments of $71.370 being made at the beginning of the year. Building C: Purchase for $657,400 cash. This building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of $6,800, Rental payments will be received at the end of each year. The Grouper Inc. has no aversion to being a landlord. Click here to view factor tables. In which building would you recommend that The Grouper Inc. locate, assuming a 12% cost of funds? (Round foctor values to 5 decimal ploces, eg. 1.25124 and final answer to 0 decimal places, es. 458,581.)

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