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A store has 5 years remaining on its lease in a mall, Rient as $2,100 per month, 60 payments remain, and the nect payment is

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A store has 5 years remaining on its lease in a mall, Rient as $2,100 per month, 60 payments remain, and the nect payment is due in 1 month. The mails awner plars to set the new 5 -year lease. The new lease cals for no rent for 9 months, then payments of $2,700 per month for the next 51 montha. The lease cannce be broken, and the stores Wace is 12% (or 1% per month). 3. Should the new lease be accepted? (Hint: Be sure to use 2% ser month.) b. If the store owner decided to bargain with the mall's owner over the new lease payment, what new lease ppyment would make the store owner inditterect betweten the new and oid leases? (Hiat: Find PV of the old lease's originel cost at t=9; then trest this as the BV of a 51 -peniad annuity wiose paymenta represent the rent curing months 10 to 60. ) Do not round intermediate calculations. Round your answer to the nearest cent. 1 c. The store uwner is not sure of the 12% WACC-it could be higher or lowes. At what nominal wacc would the stere owher be indiferent betaen tse tao inases? (hint Colculofe the differences between the twe payment streams; then find its IRR.) Do not round intermediate calcilatons. Alound veur ansaer to bwa deciris paces

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