A company has 6 years lease of the workshop in an industry zone. Rent is 3000 dollar per month and 72 payments are left. Next payment will be due in one month. The owner of the workshop is planning to sell the property in a year and want the higher rent and to sell at a higher price. The owner offered the company a deal of new 6 years lease with first 10 months no payment then payment of 1300 per month for the rest of 62 months. The lease cannot be broken. The company has WACC of 12% (1% per month).

1) Should you accept the new lease?

2) If the company decided to bargain with the owner what is the lease amount should company pay (first 10 months free and pay 62 months equal amount) which is equivalent to the old lease?