HI
I d like to ask you if you can solve a leaseback problem.
Specifically the case say :
1 year ago a bank bought a building. now the bank has been proposed to sell that building and lease it back under a 5 year lease, at the end of the term of the lease the bank will repurchase the building back.
After tax proceeds from selling building = $ 2.000.000 tax rate= 33.33% annual depreciation expenses = $75.000 term of deal = 5 years rent from year 1 to 5 = $90.000 rental growth rate = 4% and assumed cost of buy back = 3.000.000. ( the cf happen at the end of each year).
Can you show me which one is the best option (lease or keep the asset) ?
I d like to ask you if you can solve a leaseback problem.
Specifically the case say :
1 year ago a bank bought a building. now the bank has been proposed to sell that building and lease it back under a 5 year lease, at the end of the term of the lease the bank will repurchase the building back.
After tax proceeds from selling building = $ 2.000.000 tax rate= 33.33% annual depreciation expenses = $75.000 term of deal = 5 years rent from year 1 to 5 = $90.000 rental growth rate = 4% and assumed cost of buy back = 3.000.000. ( the cf happen at the end of each year).
Can you show me which one is the best option (lease or keep the asset) ?
