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The Indigo Inc., a manufacturer of low-sugar, low-sodium, Sunbelt. In order to do so, Indigo has decided to locate a new factory in the Panama

The Indigo Inc., a manufacturer of low-sugar, low-sodium, 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 $615,800, useful life 28 years. Building B: Lease for 28 years with annual lease payments of $71,850 being made at the beginning of the year. Building C: Purchase for $655,900 cash. This building is larger than needed; however, the excess space can be sublet for 28 years at a net annual rental of $6,850. Rental payments will be received at the end of each year. The Indigo Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that The Indigo Inc. locate, assuming a 11% cost of funds? (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg. 458,581.) Building A $ Net Present Value

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