AR Realty Trust is willing to provide sale-and-leaseback financing to Meridian. AR REalty Trust is willing to purchase the property owened by Meridian for $15 million and lease the properties back to Meridian at a rate of $1.5 million per year on a 5 year lease starting today. The property value is projected to increase 2% per year over the 5 year lease period. 

What is the before-tax cost of the sale-and-leaseback of the properties to Meridian (return to Agree Realty)?

Answer rating: 100% (QA)

To calculate the beforetax cost of the saleandleaseback to Meridian we need to determine the net pre... View the full answer