The Pronghorn 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$,$ Pronghorn has decided to locate a new factory in the Panama City area. Pronghorn 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 $$618,100,$ useful life $26$ years.

Building B: Lease for $26$ years with annual lease payments of $$70,340$ being made at the beginning of the year.

Building C: Purchase for $$653,200$ cash. This building is larger than needed; however, the excess space can be sublet for $26$ years at a

net annual rental of $$6,540.$ Rental payments will be received at the end of each year. The Pronghorn Inc. has no aversion to being a

landlord.

Click here to view factor tables.

In which building would you recommend that The Pronghorn Inc. locate, assuming a $12\%$ cost of funds? $($Round factor values to $5$ decimal

places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.458,581.)$

Net Present Value

Building A $

Building B $

Building C $