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The market value of the property that you own is $ 1 5 million. The gross annual rental income for this property is $ 6

The market value of the property that you own is $15 million. The gross annual rental income for this property is $600,000. The tax rate is 28%.The set up costs (renovations ect) in order to use the building and land for your own business operations are $7,000,000. The annual revenue if you were to use the building forr your own business operations with low demand would be $5 million and have a 30% chance of occuring. The annual revenue if you were to use the building for your own business operations with medium demand would be $9 million and have a 40% chance of occuring. he annual revenue if you were to use the building for your own business operations with high demand would be $13 million. The variable costs (% of revenue) is 65%. The fixed costs are $2.5 million. The costs of capital is 10% and the risk free rate is 3%. he initial cost for setting-up the expansion of business can be fully depreciated over 10 years using the straight-line method. The value of land will be preserved at its current market value, but may not be depreciated for tax reasons. Draw up a summary of the logistic businesss annual net operating cash flow.

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