Information text Use the following information for questions 29 34, each question is worth_________. Before attempting to answer the questions, set up an analysis based on the given information. Chilly Cloud Corporation (C3) operates several information technology hubs, including cloud storage, disaster recovery, and racks for lease to businesses needing additional space for their own IT needs. C3 is growing rapidly and anticipates adding 20,000 SF per year for the next five years. C3s CFO, Dave, is analyzing several options for acquiring the expected space over the next five years. There are many options; first, they could build a new building to add the expected space needed, second, they could build a new corporate office which would include the existing corporate needs as well as the expected space anticipated to be needed. Both of these options could be expanded to buying and renovating existing buildings. In addition, C3 has the option to lease property in increments that enable them to move into the needed space as the growth occurs. The rates will vary according to when and for how long they decide to lease. Also, the location could vary if it is financially advantageous and not disruptive to the operation. They also have an option to build to suit on one of the sites that are also available for construction of an owned building. C3 currently occupies 80,000 square feet in a building they own. There is no space available to expand, so in every option, C3 must dispose of the existing property or operate from multiple locations. The expected market value of the existing property is $7.2 million. The basis in the property is $2.7 million and C3 is in a 21% tax bracket. C3 wants Class A property as part of the brand they are projecting. Construction rates are between $85-115 per square foot, including property, to build before tenant finishes above standard. Lease rates are between $21-27 per square foot to lease, again at standard finishes. C3 estimates that they will spend $1.25-1.5 million on upgrades or tenant finishes in any scenario. Assuming a five-year horizon, answer the following questions with the information provided. Do not forget the tax effect on the cashflow of periodic rent and mortgage payments when calculating present values.

Question 29 Given the facts above and that the expected selling expenses would be 8% of the selling price; what is the expected net cash from sale? Select one: a. $6.624.000 b. $3,924,000 c. $5,799,960 d. $6,375,960 e. None of the above