6-10 show work

Problem -10 Nash towns and operates a number of hardware stores in the New England region rotly, the company has decided to locate another store in a rapidly growing area of Maryland. The common is trying to decide whether to purchase or lease the building and related facilities Purchase the company can purchase the construct the building, and purchase a store fixtures. The cost would be $1,162,100. An immediate down payment of $417,600 is required, and the remaining $1.414,700 would be paid off over 5 years at $354,700 per year (including interest payments made at end of year). The property is expected to have a sche of 12 years, and then it will be sold for $505,700. As the owner of the property, the company will have the following out of pocket expenses each period Property taxes to be paid at the end of each year) $40,000 Inice to be paid at the beginning of each year) 26,660 Other (maintenanon which occurs at the end of each year) 16,050 $84.90 La National Bank to agreed to purchase the site, construct the building and install the appropriate fixtures for Nash In Nash will lease the completed facility for 12 years The costs for the lace would be $240.000. Nath would have no consibility related to the facility over the 12 years. The terms of the lesere that Nash would be required to make annual payments (the first payment to be made of the time the store open and then each following year). In addition, a deposit of $100,700 is required when the store pend. This post will be returned at the end of the 120 year, assuming no damage to the building structure or fixtures Catec Computer the present value of lesteve purchase. (Currently, the cost of funds for the trees.count factor alies to decimal cins, 1.25124 and final answer to Lease presente Which of the two approaches should Nash Inc. follow Nothing should the facilities