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An owher of the Atrium Tower Office Bulding is currently negotiating a five-year lease with ACME Consolidated Corporation for 20,000 rentable square feet of office

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An owher of the Atrium Tower Office Bulding is currently negotiating a five-year lease with ACME Consolidated Corporation for 20,000 rentable square feet of office space. ACME would like a base rent of $20 per square foot with step-ups of $1 per year beginning one year from now. Required: a. What is the present value of cash flows to ATRIUM under the above lease terms? (Assume a 10\% discount rate.) b. The owner of ATRIUM belleves that base rent of $20 PSF in (0) is too low and wants to raise that amount to $24 with the same $1 step-ups. However, now ATRIUM would provide ACME a $50,000 moving allowance and $100,000 in tenant improvements (Tis). What would be the present value of this alternative to ATRIUM? C. ACME informs ATRIUM that it is willing to consider a \$23 PSF with the \$1 annual stepups. However, under this proposal, ACME would require ATRIUM to buyout the one year remaining on its existing lease in another bullding. That lease is $15 PSF for 20,000SF per year. If ATRIUM buys out ACME's old lease. ACME will not require a moving allowance or TIs. What would be the present value of this proposal to ATRIUM? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is the present value of cash hows to ATRuUM under the above lease terms? (Assume a 10\% discount rate.) (Round your answer to 2 decimal places.) An owner of the Atrium Tower Office Buliding is currently negotiating a five-year lease with ACME Consolidated Corporation for 20,000 rentable square feet of office space. ACME would like a base rent of $20 per square foot with step-ups of $1 per year beginning one year from now. Required: a. What is the present value of cash flows to ATRIUM under the above lease terms? (Assume a 10\% discount rate.) b. The owner of ATRIUM belleves that base rent of $20PSF in (a) is too low and wants to raise that amount to $24 with the same $1 step-ups. However, now ATRIUM would provide ACME a $50,000 moving allowance and $100,000 in tenant improvements (Tis). What would be the present value of this alternative to ATRIUM? C. ACME informs ATRIUM that it is wiling to consider a $23 PSF with the $1 annual stepups. However, under this proposal, ACME would require ATRIUM to buyout the one year remaining on its existing lease in another building. That lease is $15 PSF for 20,000 SF per year. If ATRiUM buys out ACME's old lease, ACME will not require a moving allowance or Tlis. What would be the present value of this proposal to ATRIUM? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. The owner of ATRIUM believes that base rent of $20 PSF in (a) is too low and wants to raise that amount to $24 with the same $1 step-ups. However, now ATRiuM would provide ACME a $50,000 moving allowance and $100,000 in tenant improvements (Tis). What would be the present value of this aiternative to ATRIUM? (Round your answer to 2 decimal) Dlace.) An owner of the Atrium Tower Office Building is currently negotiating a five-year lease with ACME Consolidated Corporation for 20,000 rentable square feet of office space. ACME would like a base rent of $20 per square foot with step-ups of $1 per year beginning one year from now. Required: a. What is the present value of cash flows to ATRIUM under the above lease terms? (Assume a 10\% discount rate.) b. The owner of ATRIUM believes that base rent of $20 PSF in (a) is too low and wants to raise that amount to $24 with the same $1 step-ups. However, now ATRIUM would provide ACME a $50,000 moving allowance and $100,000 in tenant improvements (TIs). What would be the present value of this alternative to ATRIUM? c. ACME informs ATRIUM that it is willing to consider a \$23 PSF with the \$1 annual stepups. However, under this proposal, ACME would require ATRiUM to buyout the one year remaining on its existing lease in another bulding. That lease is $15 PSF for 20,000 SF per year. If ATRIUM buys out ACME's old lease, ACME will not require a moving allowance or TIs. What would be the present value of this proposal to ATRIUM? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. ACME informs ATRIUM that it is wiling to consider a $23 PSF with the $1 annual stepups. However, under this proposal, ACME Would require ATRIUM to buyout the one year remaining on itts existing lease in another building. That lease is $15 PSF for the present value of this proposal to ATRuM? (Round lease, ACME will not require a moving allowance or TIs. What would be

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