Now we want to go to sensitivity and do a crossover chart, so again, you go to base,
you go back to the main screen, click on Sensitivity the bottom right. We want
to click an assumption that we can verify any common assumptions, but the more
we want to vary here is the present value discount rate? What's the opportunity rate
of money that they can use with their investment base against the net present
value after tax? When I click the compare button, just to make it clear, I'm going
to delete the current assumptions that. And I'm going to click over the lease
and this day, wow, so here's a list that's going to grab these files and run them
against each other. When I click on Run, it's going to go grab them running against
each other. And I, I didn't make the scale the way I wanted to see me do another
so you could see it again. And vary zero to 20 in steps of 2 compare.
Delete that row and bring over the two files. Now, when it runs this, what
is showing is the net present value is negative. So the station now says they're
going to leave their investment base in the real estate. So if I'm only if they're
only going to be able to make four percent of their money, if they take it out,
they're better off just leaving their money in in the property and saving
the money that they would be paying on the lease because their loans at about forty
three thousand a year and the lease is 80000. But if they make, let's say,
16 percent, they're better off taking their money to taking a three hundred nine
thousand out, selling the property, taking that money and putting
it into the investment that's returning 16 or greater because that's going to produce
enough income from the investment to offset the the more expensive lease.
So assuming that they're only going to make 12 percent of their money, they'd be
better off to stay. But if they did find another investment or they re-evaluated
their investment that they were thinking about, then it was higher than about 15
percent. Then they should go do that. Now, just to show you again, I'll cook another
and let's just kind of focus in here. So we're going to vary it from. 10 to 20
and steps of one and do the same compare so you can compare us as often as one.
You can actually also compare as many files as you want, as you see in the cost
comparison. But here we're just doing two and we can see that's actually right
around 14 percent. So long as they make above 14 percent, they'd be better off
selling the property and leasing back. If they're not going to make 40 percent,
they're better off staying in the property and saving those lease payments.