The ABC Corporation is considering opening on office in a new market ored that would ollow it to increose its annual sales by $2.5 million. The cost of goods sold is estimated to be 40 percent of soles, and corporote overhead would increose by $300,000, not including the cost of either acquiring or leasing office space. The corporation will have to invest $2.5 milion in office fumiture, 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 purchesed for sole use by the corporation at a total price of $4.5 million, of which $900,000 of the purchase price would represent land value, and $3.6 million would represent bullding value. The cost of the bulding would be depreclated over 39 years. The corporation is in a 21 percent tax bracket. An investor is willing to purchose the some buliding and lease it to the corporation for $450,000 per year for a term of 15 years, with the corporation paying all real estate operating expensen (absolute net lease). Real estate operoting expenses are estimated to be 50 percent of the lease payments. Estimates are that the property value will increose over the 15 -year lease term for a sale price of $5.0milli on at the end of the 15 years. If the property is purchosed, it would be financed with an interest-only mortgage for $3,150.000 at on intereot rate of 4.5 percent with a balloon poyment due ofter 15 years. Suppose that five years ago the corporation had decided to own rather than lease the real estate. Assume that it is now five years latet and monogement is considering a sale-leaseback of the property. The property con be sold todoy for 54.850 .000 and leased bock at a rate of $450.000 per year on a 15 -year lease starting today it wos purchased five years ago for $4.5 milion. Assume that the property will be worth $57 million at the end of the 15 -year lease. Required: a. How much would the corporation recelve from a sale-leaseback of the property? b. What is the cost of obtoining financing with a sale-leosebock? c. What is the retum from continuing to own the property