A property could be sold today to provide after-tax cash flow from sale of $800,000. The current after-tax cash flow from operations is $20,000, which is expected to grow by 4% year. If sold next year, the property is expected to provide an after-tax cash flow of $824,000. What is the marginal rate of return for holding the property for an additional year? 5.6% 2.6% 3.1% 9.3% Which of the following is NOT a benefit of refinancing? The investor can increase financial leverage It is an alternative to sale of the property Risk is decreased No taxes have to be paid on funds received by additional borrowing A company sells an office building that has appreciated in value and subsequently leases the space. Which of the following scenarios represents an impact that sale- leasebacks will most likely have on corporate financial statements? Lower total income in the year of sale because of capital gains tax Higher taxable income will be realized in year of sale because of a gain on sale Earnings per share increases because the mortgage has been paid off Higher taxable income will be realized because lease payments cannot be deducted