Raul Martinas, a professor of languages at Eastern University, owns a small office bullding adjacent to the university campus. He acquired the property 10 years ago at a total cost of \\( \\$ 628,000 \\) - that is, \\( \\$ 59,000 \\) for the land and \\( \\$ 569,000 \\) for the building He has just recelved an offer from a realty company that wants to purchase the property, however, the property has been a good source of income over the years, and so Martinas is unsure whether he should keep it or sell it. His alternatives are as follows: a. Keep the property. Martinas's accountant has kept careful records of the income realized from the property over the past 10 years. These records indicate the following annual revenues and expenses: Martinas makes a \\$14,225 mortgage payment each year on the property. The mortgage will be paid off in eight more years. He has been depreciating the building by the straight-line method. assuming a salvage value of \\( \\$ 85,350 \\) for the building. Which he stili thinks is an appropriate figure. He feels sure that the building can be rented for another 15 years. He also feels sure that 15 years from now the land will be worth three times what he paid for it. b. Sell the property. A realty company has offered to purchase the property by paying \\( \\$ 226,000 \\) immediately and \\( \\$ 32,000 \\) per year for the next 15 years. Control of the property would go to the realty company immediately. To sell the property, Martinas would need to pay the mortgage off, which could be done by making a lump-5um payment of \\( \\$ 92.000 \\). Click here to view Exhibit 10.1 and Exhibit 10-2 to determine the appropriate discount factor(s) using tables Required: Assume that Martinas requires a \12 fate of return. Compute net present value in favor of (or against) keeping the property using the folal-cost approach. (Round discount factor(s) to 3 decimal places and other intermediate calculations to the nearest dollar omount) b. Sell the property. A realty company has offered to purchase the property by paying \\( \\$ 226,000 \\) immediately and \\( \\$ 32,000 \\) per year for the next 15 years. Control of the property would go to the reality company immediately. To sell the property. Martinas would need to pay the mortgage off, which could be done by making a lump-sum payment of \\( \\$ 92,000 \\). Click here to view Exhibit 10-1 and Exhibit 10-2 to determine the appropriate discount factor(s) using tables. Required: Assume that Martinas requires a 12\\% rate of return. Compute net present value in favor of (or against) keeping the property using the total-cost approach. (Round discount factor(s) to 3 decimal places and other intermediate calculations to the nearest dollar amount.)