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The Sandhill 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 Sandhill 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, Sandhill has decided to locate a new factory in the Panama City area. Sandhill 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 $611,800, useful life 26 years. Building B: Lease for 26 years with annual lease payments of $70,900 being made at the beginning of the year. Building C: Purchase for $655,200 cash. This building is larger than needed; however, the excess space can be sublet for 26 years at a net annual rental of $6,230. Rental payments will be received at the end of each year. The Sandhill inc. has no aversion to being a landlord. Click here to view factor tables. In which building would you recommend that The Sandhill Inc locate, assuming a 12\% cost of funds? (Round factor values to 5 decimal places, eg. 1.25124 and final answer to O decimal places, e. . 458,581.)

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