please be as detailed as possible.

Ner Present Value Analysis of a Lease or Buy Decision Best Quality Stores, Inc, owns a nationwide chain of supermarkets. The company is going to open another store soon, and a suitable building site has been located in an attractive and rapidly growing area in discussing how the company can acquire the desired building and other facilities needed to open the new stouTom Walker, the company's vice president in charge of sales, ed. " Tow most of our competitors are starting to lease facilities other than buy, but just can't see the economics of it. Our development people tell me that we can buy the building site, put a building on it, and get all the store fixtures we need for just $850,000. They also say that property taxes, ince, and repairs would run 520,000 a Wa When you fine that we plan to keep a site for 18 years, that's total cost of $1.210.000 But then when you realiu that the property will be worth at least half million years, that's a nel cost to be of only 5710,000 What would it cost to lease the property Tunderstand the Beneficial Insurance Company is willing to purchase the building site construct building and install fixtures to our specification, and the lose the facility to us for 18 years at tulee pyment of S120,000," replied Apel Coleon, the company's executive Vicent "That's just my point," said Tom. Af $120,000 a year, it would cost a cool S2 160.000 over the 18 years That's three times what it would cost to buy, and we would we left the and? Nothing! The building would belong to the insurance company "You're overlooking a few things replied April For one thing, the treasurer's office says that we could only afford to put $350,000 down if we buy the property, and then we would have to pay the other $500,000 off over four years at $175.000 a year So there would be some interest volved on the purchase side that you haven't figured in "But that little bit of interest is nothing compared to over 2 million bucks for leasing and Tom: "Also, if we lease I understand we would have to put up an 58 000 secity deposit that we would get back until the end. And besides that we would will have to pay all the nature ind maintenance costs you like we owned the property No wonder those insurance companies are so nich if they can swing deals like this "Well, Til admit that I don't have all the figures sorted out yet replaed Apul "But I do have the operating cost breakdown for the building, which includes $7.500 mually for property taxes, 58,000 for murace, and $4,500 for repaus und der If we lease, Beneficial will handle its own surance costs and of course the owner will barve o pay the property taxes. Tu put all this together and see if losing make any scrise with our used rate of return of 165 The president wants a presentation and recommendation in the executive committee meeting Tomorrow. Let's see development and the first lease payment would be die now and the gones due in years 1-17. Developen also sad that this store should generate et cash isflow that's well above the averape for our store Reguud portiomes.) 1 dl slut app white Quality Store, and should lease buy the new arality Assume that you will be making you to the company's sect Yeshow your computation 2 How will you by the gif Tom Walkers up the of the future wa