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8. Lets say your organization has the option to purchase a small adjacent building for $800,000. The current owner is also willing to lease it
8. Lets say your organization has the option to purchase a small adjacent building for $800,000. The current owner is also willing to lease it to your organization for 10 years for a cost of $7000/month. The lease is a contract and you cant get out of it once it is signed. Whats the better deal? To answer this, you should use Excel to compute the present value of the 10-year stream of monthly payments (use an interest rate of 6%
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