Exercise 6-12 Your answer is partially correct. Try again. The Riverbed Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order do so, Riverbed has decided to locate a new factory in the Panama City area. Riverbed 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 $620,000, useful life 27 years. Building B: Lease for 27 years with annual lease payments of $71,170 being made at the beginning of the year. Building C: Purchase for $657,500 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rent $6,200. Rental payments will be received at the end of each year. The Riverbed Inc. has no aversion to being a landlord. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Net Present Value Building A 620000 BuildingB 749544 Building C 598674 The Riverbed Inc. should locate itself in Building B 10.8K/s