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Surprisingly, a few days after receiving the rental proposal, 5ofia was approached again regarding the same space, this time with an offer to purchase the space for $9.2 million. Intrigued by the idea, Sofia decided to present management with both options at management's next meeting, Non-LandDepreciableValue:$7.120millionAvg.Depr.Life:20yearsAnnualDepr.t$356,000 Should Sofia recommend the own or rent option? CASE QUESTION 3 (75 points) Piercing Safe is a multinational firm that provides consulting services to clients around the world. The company has a 11% expected return on its invested capital. Recently the firm has enjoyed an expansion in their clientele and is increasing their employee count. With growth in size, management feels that the firm needs to move into newer and bigger offices and is exploring options. Sofia Askari, VP of Development, was recently approached by a local REALTOR, who presented her with prime office space for rent in downtown Modesto, available for immediate occupancy. The space he proposes is a singleuser Class A office building with all of the high-end amenities demanded by management. Sofia felt that the space is suitable and decided to make the case at senior management's next meeting. The details for the rent option are as follows

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