v. 15 story building, upscale: $3.3 million investhent, annual net income 6.35 Challenge 5. You have an opportunity to acquire n office building for Si million. The annual net revenve from operations is expe If you like, you could arrange to finance 80% of the purchase price with an 8%line of credit from yor bank. They will let you borrow $800,000 and just pay the interest each year for an indefinite period. Your effective tax rate is 40% and there is no inflation. Question 5.a. What is your annual before-tax profit if you do not borrow any money? Question 5.b. What is your annual before-tax profit if you do borrow the $800,0002 cted to provide an after-tax profit of 9% annually on this million dollar investment. Question 5.c. What is your annual after-tax profit if you borrow the $800,000 Question 5.d. What is your ROI on your equity investment of $200,000 if you borrow the money? Question 5.e. Comment: What do you gain and what do you lose if you borrow the money