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Which of the following is a potential benefit of selling and leasing back a property? Further increases the firm's tax deductions as now both building
Which of the following is a potential benefit of selling and leasing back a property? Further increases the firm's tax deductions as now both building depreciation and lease payments are tax-deductible No need to perform any sort of sensitivity analysis to test the effect of the terminal value on the estimated IRR on the property investment The investor benefits when the sale proceeds from the sold property can be invested into a different building with the IRR from that building greater than 0. Selling the property today allows the investor to always take advantage of a higher capital gain than what it would be if the property were held longer and sold later. Selling the property today frees up cash for the investor in the amount of the resale price less the loan balance
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