A new 10,000m2 office space in Cupertino, next to Apples headquarters, is for sale for $350,000. The terms are offered at $100,000 down with the balance being paid in 60 equalmonthly payments at 15% interest. You estimate that the office would have a resale value of$600,000 at the end of 5 years.

You have the cash and could buy the office space for your current gaming startup to use as offices for game developers, but you dont need all of the space at this time. Apple has offered to lease half of the space for $2,500 per month.Your startup is currently renting a 7,000m2 office space in Santa Clara for $2,700 per month.You have the option of reducing this Santa Clara office space to 2000m2, in which case themonthly rent would be $1,000 per month. Further, you could consider ending your currentrental agreement in Santa Clara and just move everything into the new space in Cupertino.You are your CFO are considering three options:

1. Buy the new office space and lease half of the space to Apple. In turn, the Cupertino office space for your gaming company would be reduced to 5,000m2.

2. Buy the new office space and cease renting any space in Santa Clara.

3. Continue, as is, with 7,000m2 of rented office space in Cupertino.

Construct a choice table for interest rates ranging from 0% to 100%. What are the otherconcerns that might enter this decision?

****PLEASE SHOW CHOICE TABLE IN SOLUTION