:$$Hong Kong Case Study Template $($XLSX$).$Download Hong Kong Case Study Template $($XLSX$).$This spreadsheet also provides a generic format for completing the analysis.

In your analysis, address the following questions:

What after$-$tax cash flows are relevant to the purchase option, and what discount rate should be used?

What after$-$tax cash flows are relevant to the sale and leaseback option, and what discount rate should be used for those cash flows?

Which option did you choose? Use your analysis to address this question.

Perform a sensitivity analysis using:

A range of residual values from $$1\mathrm{.}5$ million to $3$ million to calculate the corresponding NPVs Escalation rates of $1,3,$ and $5$ percent The combination of the above to complete the table below with the NPVs