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The Novak 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 Novak 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, Novak has decided to locate a new factory in the Panama City area. Novak 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 $617.900, useful life 27 years. Building B: Lease for 27 years with annual lease payments of $70,330 being made at the beginning of the year. Building C: Purchase for $655,700 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,700. Rental payments will be received at the end of each year. The Novak Inc. has no aversion to being alandlord. Click here to view factor tables In which building would you recommend that The Novak Inc. locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places eg. 1.25124 and final answer to decimal places, e... 458,581.) Net Present Value Building AS S Building B S Building C

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