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View Policies Current Attempt in Progress The Blue Inc. a manufacturer of low-sugar, low-sodium, low.cholesterol TV dinners, would like to increase its market share in

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View Policies Current Attempt in Progress The Blue 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, Blue has decided to locate a new factory in the Panama City area. Blue 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 $618,300, useful life 27 years. Building B: Lease for 27 years with annual lease payments of $71,360 being made at the beginning of the year, Building C: Purchase for $651.500 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,090, Rental payments will be recelved at the end of each year. The Blue Inc. has no aversion to being a landlord, Click here to view factor tables In which building would you recommend that The Blue Inc, locate, assuming a 11% cost of funds? (Round factor values to 5 decimal places, cs 1.25124 and final answer to decimal places, es: 458,581.) Net Present Value Building A $ Building B S Building 5

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