Corporate Financing - $ 2,630,769.23 Capital Gain $...

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Data Input Sales Revenue $ 2,500,000.00 Ownership Data: Cost of Goods Sold 40% Property Value Today Additional Overhead $ 300,000.00 Time Since Purchase Up-Front Costs $ 2,500,000.00 Purchase Price Building Value Lease Data: Land Value Annual Payment $ 450,000.00 Resale Value year 15 Lease Term (years) 15 Loan-to-Value Operating Expenses 50% Loan Amount Interest rate Tax Considerations: Loan Term (years) Corporate Tax Rate 30% Equity Investment Depreciable Life (years) 39 Own Lease Difference Sales Revenue $ 2,500,000.00 $ 2,500,000.00 $ - Cost of Goods Sold 40% 40% $ - Calculated COGS $ 1,000,000.00 $ 1,000,000.00 $ - Gross Income $ 1,500,000.00 $ 1,500,000.00 $ - Operating Expenses Less: Corporate Overhead $ 300,000.00 $ 300,000.00 $ - Less: Real Estate $ 225,000.00 $ 225,000.00 $ - Less: Lease Payments $ - $ 450,000.00 $ (450,000.00) Less: Interest $ 273,000.00 $ - $ 273,000.00 Less: Depreciation $ 84,615.38 $ - $ 84,615.38 Taxable income $ 617,384.62 $ 525,000.00 $ 92,384.62 Taxes $ (185,215.38) $ (157,500.00) $ (27,715.38) Plus: Depreciation $ 84,615.38 $ - $ 84,615.38 After-Tax Cash Flow $ 516,784.62 $ 367,500.00 $ 149,284.62 Cash Flow From Sale if Owned and Sold Resale $ 4,900,000.00 Less: Mortgage Balance $ 2,730,000.00 Before-Tax Cash Flow $ 2,170,000.00 Resale $ 4,900,000.00 Less: Adjusted basis
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Unformatted text preview: $ 2,630,769.23 Capital Gain $ 2,269,230.77 Less: Tax $ 680,769.23 A³er-Tax Cash Flow $ 1,489,230.77 $ 3,900,000.00 $ 3,900,000.00 $ 3,300,000.00 $ 600,000.00 $ 4,900,000.00 70.000% $ 2,730,000.00 10% 15 Summary of AFer-Tax Cash ±lows Year Own Lease Di²erence 0 $ (3,670,000.00) $ (2,500,000.00) $ (1,170,000.00) 1 $ 516,784.62 $ 367,500.00 $ 149,284.62 2 $ 516,784.62 $ 367,500.00 $ 149,284.62 3 $ 516,784.62 $ 367,500.00 $ 149,284.62 4 $ 516,784.62 $ 367,500.00 $ 149,284.62 5 $ 516,784.62 $ 367,500.00 $ 149,284.62 6 $ 516,784.62 $ 367,500.00 $ 149,284.62 7 $ 516,784.62 $ 367,500.00 $ 149,284.62 8 $ 516,784.62 $ 367,500.00 $ 149,284.62 9 $ 516,784.62 $ 367,500.00 $ 149,284.62 10 $ 516,784.62 $ 367,500.00 $ 149,284.62 11 $ 516,784.62 $ 367,500.00 $ 149,284.62 12 $ 516,784.62 $ 367,500.00 $ 149,284.62 13 $ 516,784.62 $ 367,500.00 $ 149,284.62 14 $ 516,784.62 $ 367,500.00 $ 149,284.62 15 $ 2,006,015.38 $ 367,500.00 $ 1,638,515.38 IRR 12.56% 12.02% 13.41% Cash Flow From Sale-Leaseback of the Property at 5 years Lease Di±erence Reversion $ 4,240,000.00 Mortgage Balance $ (2,730,000.00) Reversion $ 4,240,000.00 Basis $ (3,476,923.08) Gain $ 763,076.92 Less: Taxes $ (228,923.08) A²er-Tax Cash Flow $ 1,281,076.92...
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