Assume a $1,200,000 facility that XYZ company, a 40% bracket taxpayer, has just purchased that includes land with a $200,000 cost, a 5-year economic life, and an anticipated residual value at the end of 4 years of $600,000. The analysis required for 100% mortgage at 12% interest, self-liquidating over a 4 year period (payments yearly in arrears) with a 4-year sale-leaseback where the annual rent payments (also made yearly in arrears) are equal to the total debt service of the mortgage.