The basic structure would be a five-year lease with the option to renew at the end of
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The basic structure would be a five-year lease with the option to renew at the end of the five-year term for an additional five-year term at negligible rental. LEE would be responsible for maintenance costs.
Required
(i) Use discounted cash flow analysis to evaluate and compare the cost to LEE of each of Alternatives 1 and 2.
(ii) Advise LOR on the highest lease rentals that LEE would be likely to accept under Alternative 2.
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