The Nash 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$,$ Nash has decided to locate a new factory in the Panama City area. Nash 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 $$614,400,$ useful life $27$ years.

Building B: Lease for $27$ years with annual lease payments of $$71,660$ being made at the beginning of the year.

Building C: Purchase for $$651,400$ cash. This building is larger than needed; however, the excess space can be sublet for $27$ years at a

net annual rental of $$6,980.$ Rental payments will be received at the end of each year. The Nash Inc. has no aversion to being a landlord.

Click here to view factor tables.

In which building would you recommend that The Nash Inc. locate, assuming a $12\%$ cost of funds?$($Round factor valuesto $5$ decimal

places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.458,581.)$

Week $4$: Homework

Question $4$ of $60/9$

Net Present Value

Building A $

Building B $

Building C $

The Nash Inc. should locate itself in