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 26% effective tax rate. a. Lewisville Company is currently leasing the warehouse to another company for $5900 per month on a year-to-year basis. b. The warehouse's estimated sales value is $222000. A commercial realtor believes that the price is likely to remain unchanged in the near future. The building originally cost $64500 and is being depreciated at $1950 annually. Its current net book value is $7950. c. Lewisville Company is seriously considering converting the warehouse into a factory outlet for furniture. The remodeling will cost $145000 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. d. The inventory and receivables (net of current liabilities) needed to open and sustain the factory outlet would be $670000. 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 $245000 from the condemnation. f. Estimated annual operating data, exclusive of depreciation, are as follows: Sales (cash), $945000; Operating expenses, $545000. g. Nonrecurring sales promotion costs at the beginning of year 1 (i.e., at time 0) are expected to be $114000