Acct 301 chapter 6-4 homework.docx - The Novak Inc a...

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TheNovakInc., 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,Novakhas decided to locate a new factory in the Panama City area.Novakwill 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 $611,800, useful life26years.Building B:Lease for26years with annual lease payments of $70,900being made at the beginning of the year.Building C:Purchase for $655,200cash. This building is larger than needed; however, the excess space can be sublet for

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