make an exel files and PDF FILES This individual assignment will cover purchase and lease decisions. Through this assignment you will have to evaluate and calculate your purchase and lease decisions, and decide what to do. Instructions There are several steps involved in this assignment. Some of the main steps involves calculating: 1. depreciation 2. tax shield 3. net cash flow 4. discounted cash flow Remember to review the values, formulas, organization, and your final decision before submission. Since this assignment is due in excel and pdf, please keep all formulas used in excel. The company that John Potter currently works is deciding if they should renovate their contract lease, which is due next year, or if they should move and buy their own building.

The bank rate is 12%.

The tax rate is 45%.

The lease contract says that the initial value is $350,000 per year, but this value will be adjusted yearly with an 1% increase per year.

The new building would cost $2,400,000, but a renovation would be needed.

The renovation would cost $300,000.

The new building would face a straight-line depreciation over a 20 years period, reaching a salvage value of $550,000. Based on this information, what should the company do, sign the lease or buy their own building? How much would they save if compared with the other option?