4. 9.16 You and a group of friends have purchased an annual lease at a commercial fishing pond for the last several years. It is possible to renew the lease for up to 5 years. Based on past costs, you calculated the AW values for different lease periods.

Table Summary: A table divided into 2 columns shows the AW values for leasing a commercial fishing pond for 5 years. The column headers are: column 1, Current lease renewal, years; and column 2, AW value is, dollars per year. Current LeaseRenewal, Years AW Value,$ per Year 1 −9200 2 −8100 3 −8700 4 −8900 5 −9500 Another lease option, a few miles further from your home, is available with an economic service life of 7 years and an AW of $−8600. Assuming all future costs remain unchanged, when should you transfer to the new lease and location? You value your recreation highly by using a MARR of 25% per year.