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Exercise 6-12The 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 thein case the values changes, replace the values marked green, you will get the answer marked yellowBuilding Acash price617900useful life27 yearsBuilding Blease27 yearsannual lease70330Building Cpurchase655700sublet27 yearsannual rental6700cost of funds12PV (A)618100Pv (B)622026PV (C )601532should locate toBuiding CBuilding 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 aKingbird 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 factorye 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