Please Calculate it with a comprehensive manner along with steps, formulas. You are not allowed to do it in an easy way out method just for easing your job. Please do it properly.

Q$1)$ The Equine Corporation is considering opening an office in a new market that would allow it to increase its annual sales by $$2\mathrm{.}5$ million. Cost of goods sold is estimated to be $40$ percent of sales, and corporate overhead would be increase by $$300,000,$ not including the cost either acquiring or leasing office space. The corporation will have to invest $$2\mathrm{.}5$ million in office before considering the cost of owning or leasing the office space.

A small office building could be purchased for sole use by the corporation at a total price of $$3\mathrm{.}9$ million, of which $$600,000$ of the purchase price would represent land value, and $$3\mathrm{.}3$ million would represent building value. The cost of the building would be depreciated over $39$ years. The corporation is in $30\%$ tax bracket.

An investor is willing to purchase the same building and lease it to the corporation from $$45,000$ per year for a term of $15$ years, with the corporation paying all real estate operating expenses $($absolute net lease$).$ Real estate operating expenses are estimated to be $50\%$ of the lease payments.

It is estimated that the property value will increase over the $15-$year lease term for a sale price of $$4\mathrm{.}9$ million at the end of the $15$ years. If the property is purchased, it would be financed with an interest$-$only mortgage for $$2,730,000$ at an interest rate of $10\%$ with a balloon payment due after $15$ years.

$($a$)$ Compare return on the incremental cash flow from owning versus lease.

$($b$)$ Evaluate the benefits to the corporation from opening the office building under the lease or owning assumptions.