A company is planning to move to a larger office and is trying to decide if the new office should be owned or leased. The incremental sales from opening the new office are $1, 200,000. The cost of goods sold is 40%. The operating expenses for the business are an additional $150,000 and the operating expenses for the building, whether you lease or own. are $100,000. You can either purchase the property for $1,600,000, with a 75% loan at interest only, for 15 years. or you can lease the property for $200,000 per year for a 15-year period. The properly will be worth $2,000,000 when the fifteen year period is exhausted. Assume the capital gains tax on sale is $200,000. What is the differential return from owning rather than leasing Bonus question: what impact if any is there on the return if the loan is amortizing (think qualitatively)