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the pearl inc., a manufacturer of low-sugar, low-sodium, low-cholesterol tv dinner, would like to increase its market share in the sunbelt. in order to do
the pearl inc., a manufacturer of low-sugar, low-sodium, low-cholesterol tv dinner, would like to increase its market share in the sunbelt. in order to do so, pearl has decided to locate to a new factoru in the panama city area. pearl 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 similar buildings that will meet their needs. --- see image for more details.
The Pearl lnce a manufacturer of low-sagar, low-god dum, low-cholesterol TV dinners, would loke to increase its market thare in the Sunbele in order to do so, Pearl fas decided to locate a new factory in the Panama City area. Pearl will either bay or icase a site. depending upon which is more advantageous. The sht location committee has narrowed down the available sites to the foltowing three very similar buidings that wil meet their needs Bullding A.Purchase for a cash price of 5617.900, useful ife 27 years. Bullding B: Lesse for 27 years with annual lease pavments of 570,330 being made at the beginning of the year. Euilding C: Purchase for $655,700 cash. This buildins is larger than needech however, the excess soace can be sublet for 27 years ats net anoual rental of 56,700 . Rental payments will be received at the end of each year. The Pearl inc has no aversion to beinca landiord. Clickere to view fictor tabies. In which buiding would yeu recommend that The Peart lncilocate, assuming a 120 cost of funds? (hound factor velues to 5 decimal ploces e. 1.25124 and finol arswer to 0 decimal ploces, es. 4585 Et) Step by Step Solution
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