The Indigo 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$,$ Indigo has decided to locate a new factory in the Panama City area.

Indigo 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 $$613,700,$ useful life $27$ years.

Building B: Lease for $27$ years with annual lease payments of $$70,100$ being made at the beginning of the year.

Building C: Purchase for $$659,100$ cash. This building is larger than needed; however, the excess space can be sublet

for $27$ years at a net annual rental of $$6,470.$ Rental payments will be received at the end of each year. The Indigo Inc.

has no aversion to being a landlord.

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In which building would you recommend that The Indigo Inc. locate, assuming a $12\%$ cost of funds? $($Round factor

values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.458,581.)$

Net Present Value

Building A $

Building B $

Building $C$ $