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 $23 per square foot (PSF) 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 $23 PSF in (a) is too low and wants to raise that amount to $27 with the same $1 step-ups. However , now ATRIUM would provide ACME a $50,600 moving allowance and $106,000 tenant Improvements () . What would be the present value of this alternative to ATRIUM ?

c. ACME Informs ATRIUM that it is willing to consider a $26 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 $ 18 PSF for 20,000 SF per year If ATRIUM buys out ACME's old lease, ACME will not require a moving allowance or . What would be the net present value of this proposal to ATRIUM?

***please round your answer to 2 decimal places.***