=+◗ Option 2. The facility can be leased to Peaches Ltd, one of Maleny Dairy Foods’s suppliers, for five years. Under the lease terms, Peaches would pay Maleny Dairy Foods $96000 rent per year (payable at year-end) and would grant Maleny Dairy Foods a

$23000 annual discount off the normal price of fruit purchased by Maleny Dairy Foods (assume discount received at year-end for each of the five years). Maleny Dairy Foods would bear all of the facility’s ownership costs. Maleny Dairy Foods expects to sell this facility for $95000 at the end of the five-year lease.