The Sheffield 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, Sheffield has decided to locate a new factory in the Panama City area. Sheffield 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. The Sheffield 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, Sheffield has decided to locate a new factory in the Panama City area. Sheffield 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 $ 615,800, useful life 28 years. Building B: Lease for 28 years with annual lease payments of $ 71,850 being made at the beginning of the year. Building C: Purchase for $ 655,900 cash. This building is larger than needed; however, the excess space can be sublet for 28 years at a net annual rental of $ 6,850. Rental payments will be received at the end of each year. The Sheffield Inc. has no aversion to being a landlord.

In which building would you recommend that The Sheffield Inc. locate, assuming a 11% cost of funds?