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The Martinez 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 Martinez 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, Martinez has decided to locate a new factory in the Panama City area. Martinez 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 $612,100, useful life 26 years. Building B: Lease for 26 years with annual lease payments of $71.490 being made at the beginning of the year. Building C: Purchase for $655,200 cash. This building is larger than needed; however, the excess space can be sublet for 26 years at a net annual rental of $6,850. Rental payments will be received at the end of each year. The Martinez Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that The Martinez Inc. locate, assuming a 11% cost of funds? (Round factor values to 5 decimal places, eg. 1.25124 and final answer to decimal places, eg. 458,581.) Net Present Value 612100 Building A $ Building B $ 653543 Building C 5

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