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The Monty Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increisn its market share in the Sunbelt. In order to do

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The Monty Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increisn its market share in the Sunbelt. In order to do so, Monty has decided to locate a new factory in the Panama City area. N. her buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down tin 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 Monty Inc has no aversion to being a landlord. Click here to view factor tables. In which building would you recommend that The Monty Inc. locate, assuming a 12% cost of funds? (Round foctor values to 5 decimal places, es. 1.25124 and final answer to 0 decimal ploces, eg. 458, 581.)

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