E$6-12($L$04)($Analysis of Alternatives$)$ The Black Knights 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$,$ Black Knights has decided to locate a new factory in the Panama City area. Black Knights 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 $$600,000,$ useful life $25$ years.

Building B: Lease for $25$ years with annual lease payments of $$69,000$ being made at the beginning of the year.

Building C: Purchase for $$650,000$ cash. This building is larger than needed; however, the excess space can be sublet for $25$ years at a net annual rental of $$7,000.$ Rental payments will be received at the end of each year. The Black Knights Inc. has no aversion to being a landlord.