Marin Inc, a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its...
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Marin Inc, a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in Western Canada. To do so, Marin has decided to locate a new factory in Kelowna, B.C. Marin will either buy or lease a site, depending on which is more advantageous. The site location committee has narrowed down the available sites to the following three buildings: Building A: Purchase for a cash price of \\( \\$ 600,000 \\), useful life 25 years. Building B: Lease for 25 years with annual lease payments of \\( \\$ 70,000 \\) being made at the beginning of the year. Building C: Purchase for \\( \\$ 652,000 \\) cash. This building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of \\( \\$ 7,900 \\). Rental payments will be received at the end of each year. Marin has no aversion to t. andlord. Click here to view Table A.4 - PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 Click here to view Table A.5 - PRESENT VALUE OF AN ANNUITY DUE OF 1 Calculate the net present value of three buildings, assuming a \12 cost of funds. (For calculation purposes, use 5 decimal places as displayed in the foctor toble provided. Round final answers to O decimal places, eg. 5.275.) In which building would you recommend that Marin locate? Marin should locate itself in

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