Exercise 6-12 Your answer is partially correct. Try again. The Nash Inc., a manufacturer of lowsugar, lowsodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Nash has decided to locate a new factory in the Panama City area. Nash 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 $618,300, useful life 27 years. Building B: Lease for 27 years with annual lease payments of $71,360 being made at the beginning of the year. Building C: Purchase for $651,500 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,090. Rental payments will be received at the end of each year. The Nash Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that The Nash Inc. locate, assuming a 11% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, 9.9. 458,581.) Net Present Value I Building A 618300 I Building B $ 748428 Building C 599444 I \\ Building c s The Nash Inc. should locate itself in . Iuv 'rn 1'sz