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The Porter Beverage Factory owns a building for its operations. Porter uses only half of the building and is considering two options for the unused space. The Popcorn Store would like to purchase the half of the building that is not being used for $550,000. A 5% commission would have to be paid at the time of purchase. Salty Snacks would like to lease the half of the building for the next 5 years at $100,000 each year. Porter would have to continue paying $15,000 of property taxes each year and $2,000 of yearly insurance on the property, according to the proposed lease agreement.
Determine the differential income or loss from the lease alternative.
Burglary
The illegal entry into a building with the intent to commit a crime, particularly theft.
Guard Dogs
Dogs trained to protect property and people by watching over them and providing a deterrent to potential intruders or threats.
Fences and Locks
Physical security measures used to protect property and deter unauthorized access.
Social Design
The practice of creating social environments and structures to address societal issues and improve community well-being.
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