Three locations have been identified by Franklin Company for a new distribution center. All are equivalent except for the price. The following is noted for each possible center:\ \ Center A: Cash purchase of $500,000\ \ Center B: Down payment of $100,000 and annual payments of $50,000 at the end of the year for 20 years.\ \ Center C: No down payment but annual payments of $40,000 at the beginning of the year for 25 years. \ \ Assuming a borrowing rate of 8%, which Center is the least costly to the company?\ \ Question 10Answer\ \ a.\ Center C\ \ \ b.\ Center A\ \ \ c.\ Center B\ \ \ d.\ Center A and Center B are equivalent options\ \ \ e.\ Not enough information to make a decision