The Tamarisk Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase...
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The Tamarisk 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. Tamarisk has decided to locate a new factory in the Panama City area. Tamarisk 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 $619,600 useful life 26 years. Building B: Lease for 26 years with annual lease payments of $70,510 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 $6.900. Rental payments will be received at the end of each year. The Tamarisk Inc. has no aversion to being a landlord Click here to view factor tables In which building would you recommend that The Tamarisk Inc. locate, assuming a 10% cost of funds? (Round factor values to 5 decimal ploceses. 1.25124 and final answer to decimal places, eg,458,581) Net Precent Value Net Present Value Building A $ Building B S Building C $ $ The Tamarisk Inc. should locate itself in


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