The ABC Corporation is considering opening an office in a new market area that would allow it to increase its annual sales by $\backslash (\backslash$$ $2\mathrm{.}6\backslash )$ million. The cost of goods sold is estimated to be $40$ percent of sales, and corporate overhead would increase by $\backslash (\backslash$$ $306,500\backslash ),$ not including the cost of either acquiring or leasing office space. The corporation will have to invest $\backslash (\backslash$$ $2\mathrm{.}6\backslash )$ million in office furniture, office equipment, and other up$-$front costs associated with opening the new office before considering the costs of owning or leasing the office space. A small office building could be purchased for sole use by the corporation at a total price of $\backslash (\backslash$$ $5\mathrm{.}8\backslash )$ million, of which $\backslash (\backslash$$ $900,000\backslash )$ of the purchase price would represent land value, and $\backslash (\backslash$$ $4\mathrm{.}9\backslash )$ million would represent building value. The cost of the building would be depreciated over $39$ years. The corporation is in a $21$ percent tax bracket. An investor is willing to purchase the same building and lease it to the corporation for $\backslash (\backslash$$ $645,000\backslash )$ per year for a term of $15$ years, with the corporation paying all real estate operating expenses $($absolute net lease$).$ Real estate operating expenses are estimated to be $50$ percent of the lease payments. Estimates are that the property value will increase over the $15-$year lease term for a sale price of $\backslash (\backslash$$ $6\mathrm{.}3\backslash )$ million at the end of the $15$ years. If the property is purchased, it would be financed with an interest$-$only mortgage for $\backslash (\backslash$$ $3,280,000\backslash )$ at an interest rate of $4\mathrm{.}5$ percent with a balloon payment due after $15$ years. Required: a$.$ What is the return from opening the office building under the assumption that it is leased? b$.$ What is the return from opening the office building under the assumption that it is owned? c$.$ What is the return on the incremental cash flow from owning versus leasing?