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The Nash Inc a manufacturer of law-sugar, low.sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do
The Nash Inc a manufacturer of law-sugar, low.sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so. Nash has decided to locate a new factory in the Panama City area. Nash 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 cat price of 5612.400, useful life 26 years Building B: Lease for 26 years with annual tease payments of 571,490 being made at the beginning of the year. Building C. Purchase for 5655.200 cash. This building is larger than needed; however, the excess space can be sublet tor 26 years at a net annual rental of 56,850. Rental payments will be received at the end of each year. The Nash Inc. has no aversion to being a landlord Click here to sew factor.tables In which building would you recommend that The Nash Inc, locate, assuminga 11% cost of funds? (Round factor values to 5 decimal places, ex. 1.25124 and final answer to decimal places, es 458,581.) Net Present Value Building A $ 672100 Building B $ Building $
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