Question: Keter to problem 1. suppose that live years ago the corporation had decided to own ra- ther than lease the real estate. Assume that it

 Keter to problem 1. suppose that live years ago the corporation

Keter to problem 1. suppose that live years ago the corporation had decided to own ra- ther than lease the real estate. Assume that it is now five years later and management is considering a sale-leaseback of the property. The property can be sold today for $4 240,000 and leased back at a rate of $450,000 per year on a 15-year lease starting to- day. It was purchased ve years ago for $3.9 million. Assume that the property will be worth $5 .? million at the end of the 15-year lease. a. How much would the corporation receive from a sale-leasehack of the property? b. What is the cost of obtaining nancing with a sale-leasehack? c. What is the return from continuing to own the property

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