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A store has 5 years remaining on its lease in a mall. Rent is $1.000 per month, 60 payments romain, and the next payment is

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A store has 5 years remaining on its lease in a mall. Rent is $1.000 per month, 60 payments romain, and the next payment is due in 1 month. The mall's owner plant to sell the property in a year and wants rent at that time to be high so that the property will appear more valuable. Therefore, the store has been offered a great deal" (owners worde) on a new 5-year late. The new lease calls for no rent for 9 months, then payments of $2,000 per month for the next 51 months. The lease cannot be broken, and the store's WACC I 12% (or 1% per month), a. Should the new lease be accepted? (Hint: Be sure to use 1% per month.) Select b. If the store owner dedded to bargain with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and old leases (Hint: Find FV of the old lean original costat, then treat this as the PV of a 51-period annuity whose payments represent the rent during months 1 to 60.) Round your answer to the nearest cent. Do not round your intermediate calculations c. The store owner is not sure of the 12% WACC-I could be higher or lower At what nominal Wace would the store owner be indifferent between the two teases (HintCalculate the differences between the two payment streams then find its RR.) Hound your answer to two decimal places. Do not round your intermediate calculations

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