Current Attempt in Progress The Oriole Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners,...
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Current Attempt in Progress The Oriole 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, Orlole has decided to locate a new factory in the Panama City area. Oriole 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 $ 615,800, useful life 28 years. Building B: Lease for 28 years with annual lease payments of $ 71850 being made at the beginning of the year. Building C: Purchase for $655,900 cash. This building is targer than needed; however, the excess space can be sublet for 28 years at a net annual rental of $ 6,850. Rental payments will be received at the end of each year. The Oriole Inc has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that The Oriole Inc. locate assuming a 11% cost of funds? (Round factor values to decimal places, cs 1.25124 and final answer to decimo ploceses, 458,581) Net Present Value Building $ Building B $ Building $ The Oriole Inc. should locate itself in
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