In mid 2024, if you learned that Tenant #1 would be willing to vacate on 12/31/2024 if you found a new tenant. By luck, a tenant representation broker just presented a requirement for 50,000 square feet starting on January 1, 2025 for a well-respected international Fortune 500 company with an equal credit rating to Tenant #1. The lease offered is for 10-years and the terms are, zero rent first year, $27 per square foot second year, then growing by 3% each year for years 3 through 10. Rent is paid at the END of each year in one lump sum. A. Strictly looking at the NEW lease versus the EXISTING lease, which gives you the highest NPV as of 1/1/2025 (not factoring the planned sale, or anything else) assuming a discount rate of 8%? B. What would the sale price of the building be on 12/31/2026 if the NEW lease is accepted? C. Assuming the inflation expectation of 3% per annum is expected to remain, what you ADVISE the fund to do regarding this leasing decision (you must support your answer with logic and/or math)