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The Skysong 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 Skysong 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, Skysong has decided to locate a new factory in the Panama City area. Skysong 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 $ 614.400, useful life 27 years, Building B: Lease for 27 years with annual lease payments of $ 71,660 being made at the beginning of the year. Building C: Purchase for $ 651.400 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $ 6,980. Rental payments will be received at the end of each year. The Skysong Ine has no aversion to being a landlord. Click here to view factor tables in which building would you recommend that The Skysong 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, eg. 458,581.) Net Present Value Building A $ 614400 Building B $ Building C $

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