ou are considering whether to purchase or lease some real estate. As part of your analysis, you must estimate the annual incremental cash flow associated with owning, i.e., cash flow if owned minus cash flow if leased. Assuming your marginal income tax rate is 21%, what is the annual incremental cash flow from owning as opposed to leasing if you project annual cash flows under each scenario to be as follows?

	Own	Lease
Sales	3,700,000	3,700,000
Cost of goods sold	(1,560,000)	(1,560,000)
Gross income	2,140,000	2,140,000
Business OpEx	(500,000)	(500,000)
Real estate OpEx	(170,000)	(170,000)
Lease payment	-	(560,000)
Interest	(400,000)	-
Depreciation	(120,000)	-
Taxable income	950,000	910,000