3 Problem 9-3 An owner of the ATRIUM Tower Office Building is currently negotiating a five-year lease with ACME Consolidated Corporation for 20,000 rentable square feet of office space. ACME would like a base rent of $22 per square foot (PSF) with step-ups of $1 per year beginning one year from now. 04:49:08 Required: a. What is the present value of cash flows to ATRIUM under the above lease terms? (Assume a 10% discount rate.) Skipped b. The owner of ATRIUM believes that base rent of $22 PSF in (a) is too low and wants to raise that amount to $26 with the same $1 step-ups. However, now ATRIUM would provide ACME a $50,400 moving allowance and $104,000 in tenant improvements (Tls). What would be the net present value of this alternative to ATRIUM? eBook c. ACME informs ATRIUM that it is willing to consider a $25 PSF with the $1 annual stepups. However, under this proposal, ACME would require ATRIUM to buyout the one year remaining on its existing lease in another building. That lease is $17 PSF for 20,000 SF per year. If ATRIUM buys out ACME's old lease, ACME will not require a moving allowance or Tls. What would be the net present value of this proposal to ATRIUM? C Print 3 points