Which option is the least costly to the company

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Question - Marigold Corp. requires a new manufacturing facility. It found three locations; all of which would provide the needed capacity, the only difference is the price. Location A may be purchased for $503000. Location B may be acquired with a down payment of $100600 and annual payments at the end of each of the next twenty years of $50300. Location C requires $40240 payments at the beginning of each of the next twenty-five years. Assuming Marigold's borrowing costs are 8% per annum, which option is the least costly to the company?

Reference no: EM132910141

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