The Pronghorn Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to i the Sunbelt. In order to do so, Pronghorn has decided to locate a new factory in the Panama City area. Pr lease a site depending upon which is more advantageous. The site location committee has narrowed dow following three very similar buildings that will meet their needs. Building A: Purchase for a cash price of $618,100, useful life 26 years. Building B: Lease for 26 years with annual lease payments of $70,340 being made at the beginning of the Building C: Purchase for $653,200 cash. This building is larger than needed; however, the excess space ca net annual rental of $6,540. Rental payments will be received at the end of each year. The Pronghorn Inc. landlord.

The Pronghorn Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to i the Sunbelt. In order to do so, Pronghorn has decided to locate a new factory in the Panama City area. Pr lease a site depending upon which is more advantageous. The site location committee has narrowed dow following three very similar buildings that will meet their needs. Building A: Purchase for a cash price of $618,100, useful life 26 years. Building B: Lease for 26 years with annual lease payments of $70,340 being made at the beginning of the Building C: Purchase for $653,200 cash. This building is larger than needed; however, the excess space ca net annual rental of $6,540. Rental payments will be received at the end of each year. The Pronghorn Inc. landlord.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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pls answer the following questions. thanks