Grant Investment Ltd have developed an interesting option. The challenge i to buy a rather worn out real estate for £700 000 and let it to start ups. During the first five years the estimated rent is £200 000. During the fifth year the offices in the building are planned to be refurbished at an estimate cost of £300 000. For the first five years of the project the direct cost for cleaning and maintenance is set at £70 000 per year. The contract with the tenants stipulates an increase of rent as from year 6 to year 10 to be £400 000 annually. At the same time the estimated cost for cleaning and maintenance is expected to increase by £50 000 annually. All revenues and cost above are expected to be paid in the end of each year. Grant Investment Ltd have an risk free return available at 5% and given the market

Data: So 101; X= 114; 1+r= 1.12. The two possibilities for sr are 143 and 85.

E14.7

Hansen Corporation. a C Corporation (mot a manufacturer) reports the following items in income and expenses for 2021 Gross Revenue $900,000 Dividend Received from 30% owned Corp 200,000 LTCG 30,000 STCL 12000 City of Lee's Summit Bond Interest 10000 COGS 375000 Administrative Expenses 325000 Charitable Contribution 60,000 Compute Hansen's C Corp Taxable income?