Lou Lewis, the president of Lewisville Company, has asked you to give him an analysis of the best use of a warehouse the company owns. Note: The company has a 37% effective tax rate. a. Lewisville Company is currently leasing the warehouse to another company for $5,700 per month on a year-to-year basis. (Hint Use the PV function in Excel to calculate, on an after-tax basis, the PV of this stream of monthly rental receipts.) b. The warehouse's estimated sales value is $217,000. A commercial realtor believes that the price is likely to remain unchanged in the near future. The building originally cost $63,500 and is being depreciated at $1,850 annually. Its current net book value (NBV) is $7,850. c. Lewisville Company is seriously considering converting the warehouse into a factory outlet for furniture. The remodeling will cost $135,000 and will be modest because the major attraction will be rock-bottom prices. The remodeling cost will be depreciated over the next 5 years using the double-declining-balance method. (Note. Use the VDB function in Excel to calculate depreciation charges. The advantage of using the VDB, rather than the DDB, function is that there is a (default) option in the former that provides an automatic switch to the straight-line method when it is advantageous to do so.) d. The inventory and receivables (net of current liabilities) needed to open and sustain the factory outlet would be $655,000. This total is fully recoverable whenever operations terminate. e. Lou is fairly certain that the warehouse will be condemned in 10 years to make room for a new highway. The firm most likely would receive $235,000 from the condemnation. f. Estimated annual operating data, exclusive of depreciation, are as follows: Sales (cash) $ 935,000 EDE 000