The pina 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, pina has decided to locate a new factory in the panama city area. pina 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 $610,600, useful life 27 years.
building b: lease for 27 years with annual lease payments of $70,870 being made at the beginning of the year.
building c: purchase for $657,200 cash. this building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,110. rental payments will be received at the end of each year.
the pina inc. has no aversion to being a landlord. in which building would you recommend that the pina inc. locate, assuming a 12% cost of funds? (round factor values to 5 decimal places, e. g. 1.25124 and final answer to 0 decimal places, e. g. 458,581.)

107x106 is the answer

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.

answerup to (3) three years;