Corporation X requires more land to provide parking facilities for its staff at one of its branch location. two option are available it can purchase land for $200,000 or lease it for $20,000 per year. The corporation's long-range restructuring plans call for the closing of the branch after five years. Real estate studies indicate that land value will likely continue to increase at 4% annually

Corporation X has limited borowing capacity, and so if it uses current founds, it will have to forgo certain business opportunity. tyically, the corporation investments provide a minimum pre-tax return of 20% the corporation tas rate is 30%

Required: Calculate net acquisition cost of land, in case of purchase.