ABCDEFGHIJKLMNOPQRSTUVWXYZAAAB
1
2
Current Monthly Income Stream
760Buyout125000Scenario
3
3April 2025 + 10%836Capital Gains Tax20%My family owns land. On that land is a cell phone tower. We lease the land underneath the tower to the cell phone tower company (CPTC) in exchange for a monthly payment of $760 a month. This amount increases by 10% every 5 years (April 2025 is the next increase)
* This lease has 9x5 year terms, of which the company can cancel at any 5 year cycle.

Instead of continuing to receive monthly payments, have received an offer to buy out our lease for $125,000.00.

We would like to evaluate our options
A. Keep the monthly income stream
B. Sell the lease, pay capital gains tax, and reinvest the money
- What return would we need to get to get a similar return?
4
4April 2030 + 10%919.6State Tax5%
5
5April 2035 + 10%1011.56Total Taxes Paid31250
6
6April 2040 + 10%1112.716Cash Remaining93750
7
7April 2045 + 10%1223.9876
8
8April 2050 + 10%1346.38636
9
9April 2055 + 10%1481.024996
10
11
Risk of cancellation
30%
12
13
What is the NPVWhat is the NPV93750
14
What rate of return do we need to get the cash flow of option A
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100