Your answer is partially correct.
Marin Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so Marin has decided to locate
a new factory in the Cedar Rapid area. Marin 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 buildings:
Building A: Purchase for a cash price of $ useful life years.
Building B: Lease for years with annual lease payments of $ being made at the beginning of the year.
Building C: Purchase for $ cash. This building is larger than needed; however, the excess space can be sublet for years at a
net annual rental of $ Rental payments will be received at the end of each year. Marin Inc. has no aversion to being a landlord.
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In which building would you recommend that Marin Inc. locate, assuming a cost of funds? Round factor values to decimal places,
eg and final answers to decimal places, eg
Net Present Value
Building A $
Building B $
Building $
