Gradabook ORION Downloadable eTextbook ULL SCREEN PRINTER VERSSON BAcK Exercise 6-12 The Sarasota Inc., a...

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Gradabook ORION Downloadable eTextbook ULL SCREEN PRINTER VERSSON BAcK Exercise 6-12 The Sarasota 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, Sarasota has decided to locate a new factory in the Panama City area. Sarasota 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 $619,800, useful life 26 years. Building B: Lease for 26 years with annual lease payments of $71,730 being made at the beginning of the year Building C: Purchase for $650,100 cash. This building is larger than needed; however, the excess space can be sublet for 26 years at a net annual rental of $6,810. Rental payments will be received at the end of each year. The Sarasota Inc. has no aversion to being a landlord In which building would you recommend that The Sarasota Inc. locate, assuming a 11% cost of tu ds? (Round factor values to 5 deci nal place, e, 1.25124 and final answer to O decima places, e.g. 458,581.) Net Present Value Building A s Building B Building C The Sarasota Inc. should locate itself in Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT 4742

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