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The Metiock inc, a manufacturer of low-swgar, low-sodium, low-uholestercl TV dinners, would like to increase...

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Accounting

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The Metiock inc, a manufacturer of low-swgar, low-sodium, low-uholestercl TV dinners, would like to increase its market share in the deperding upon which is more advantageous. The site location comunittee has narrowed down the avail able sites to the following threevery simitar buildings that will meet their needs. Building A: Purchase for a cash price of $614,400, useful tife 27 years. Building B: Lease for 27 vears with arnual leme pryments of $71,600 being made at the beginningof the voar: Building C: Purchase for $651,400 cash, This bullding is larger than needed; however, the excess space can be wublet foe 27 years at a net annual rental of \$6,980. Rental payments wilt be received at the end of eachyear. The Metiocklinc. has no avervon fo being a landlord. Click here to view factor tables In which butifing would you recommend that The Metlock inc. locate, assumires 12% cost of funds? (Round foctor values to 5 decimal places, es. 1.25124 and final answer to 0 decimal places, es. 458,581.)

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