subject
Business, 05.05.2020 18:33 kkmwkk031

A store has 5 years remaining on its lease in a mall. Rent is $2,100 per month, 60 payments remain, and the next payment is due in 1 month. The mall's owner plans to sell the property in a year and wants rent at that time to be high so that the property will appear more valuable. Therefore, the store has been offered a "great deal" (owner's words) on a new 5-year lease. The new lease calls for no rent for 9 months, then payments of $2,600 per month for the next 51 months. The lease cannot be broken, and the store's WACC is 12% (or 1% per month).
Required:
a. If the store owner decided to bargain with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and the old leases?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 16:30
The movement of an economy from one condition to another and back again
Answers: 2
question
Business, 21.06.2019 21:00
Identify the management, organization, and technology factors responsible for slow adoption rates of internal corporate social networks.when a company decides to launch a social networking program the management, all need to be on board with the launch. from the ceo down to the shift or assistant manager everyone needs to know its coming and be excited. the organization of such a launch needs to be mapped out, and training provided for the new systems. within the company, they need to make sure the technology at hand (computers, tablets, and company phones), are all compatible with the system. when a company launches a new system, and the find that the employees are not adopting it, they need to investigate the reasons. is the management at all level's onboard? did we organize the launch properly? do we have the right technology for the system? things can goeither way but if
Answers: 2
question
Business, 22.06.2019 20:00
How many organs are supplied at a zero price? (b) how many people die in the government-regulated economy where the government-set price ceiling is p = 0? the quantity qd – qa. the quantity qe – qa. the quantity qd – qe. (c) how many people die in the market-driven economy?
Answers: 1
question
Business, 22.06.2019 23:30
Part 1: interview at least three different people you know that fall within three age ranges (25-35), (36-50), and (51-70) year of age. ask each person you interview if they have life insurance (term, whole life etc.) and health insurance. ask what factors influenced their decision to buy or not the insurance coverage? report your findings to this assignment. specify who the people were that you spoke with.\
Answers: 3
You know the right answer?
A store has 5 years remaining on its lease in a mall. Rent is $2,100 per month, 60 payments remain,...
Questions
question
Mathematics, 31.10.2019 08:31
question
Computers and Technology, 31.10.2019 08:31