A store has $5$ years remaining on its lease in a mall. Rent is $$2,000$ per month, $60$ payments remain, and the next payment is due in $1$ month. The mall's

owner plans 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" $($owner$\text{'}$s words$)$ on a new $5-$year lease. The new lease calls for no rent for $9$ months, then payments of $$2,750$ per

month for the next $51$ months. The lease cannot be broken, and the store's WACC is $12\%($or $1\%$ per month$).$

a$.$ Should the new lease be accepted? $($Hint: Be sure to use $1\%$ per month.$)$

b$.$ If the store owner decided 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 lease's original cost at $t=9$; then treat this as the PV of a $51-$

period annuity whose payments represent the rent during months $10$ to $60.)$ Do not round intermediate calculations. Round your answer to

the nearest cent.

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c$.$ The store owner is not sure of the $12\%$ WACC$-$it could be higher or lower. At what nominal WACC would the store owner be indifferent

between the two leases? $($Hint: Calculate the differences between the two payment streams; then find its IRR.$)$ Do not round intermediate

calculations. Round your answer to two decimal places.