ACCT 550 Home week 4.xlsx - Exercise 6-12 The Kingbird Inc...

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Exercise 6-12 The Kingbird Inc.,., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like Building B: Lease for 26 years with annual lease payments of $70,340 being made at the in case the values changes, replace the values marked green, you will get the answer marked yellow Building A cash price 617900 useful life 27 years Building B lease 27 years annual lease 70330 Building C purchase 655700 sublet 27 years annual rental 6700 cost of funds 12 PV (A) 618100 Pv (B) 622026 PV (C ) 601532 should locate to Buiding C Building A: Purchase for a cash price of $618,100, useful life 26 years. Building C: Purchase for $653,200 cash. This building is larger than needed; however, sublet for 26 years at a net annual rental of $6,540. Rental payments will be received a Kingbird Inc. has no aversion to being a landlord.
to increase its market share in the Sunbelt. In order to do so, Sheridan has decided to locate a new factory e beginning of the year. , the excess space can be at the end of each year. The
y in the Panama City area. Sheridan will either buy or lease a site depending upon which is more advantage

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