part 2

A store has 5 years remaining on its lease in a mall. Rent is $2,100 per month, 60 payments remain, and the next payment is due in 1 month. The mail'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 mare valuable. Therefore, the store has been offered a "great deal" (owner's words) on a new 5-year lease. The new lease calls for no rent for 9 months, then payments of $2,500 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.) No 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 lense's original costatt - 9; then treat this as the PV of a Si-period annuity whose payments represent the rent during months 10 to 60.) Do not round intermediate calculations. Round your answer to the nearest cent. $ c. The store owner is not sure of the 12% WACC could be higher or lower. At what nomina WACC would the store owner be indifferent between the two leases? (Mint Calculate the differences between the two payment streams; then find its IRR) Do not round Intermediate calculations. Round your answer to two decimal places A project has annual cash flows of $7,000 for the next 10 years and then $7.500 each year for the following 10 years. The IRR of this 20-year project is 13.78%. If the firm's WACC IS 10%, what is the project's NPV? Do not round Intermediate calculations. Round your answer to the nearest cent. A project has annual cash flows of $7,000 for the next 10 years and then $7.500 each year for the following 10 years. The IRR of this 20-year project is 13.78%. If the firm's WACC is 10%, what is the project's NPV? Do not round intermediate calculations, Round your answer to the nearest cent, $