Save Submit Assignment for Grading Problem 11.18 (NPV and IRR) Question 19 of 20 Check My Work (3 remaining) eBook A store has 5 years remaining on its lease in a mall. Rent is $1,900 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'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.) -Select- b owner decided to bargin with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the leases? (Hint: Find PV 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. -Select Yes NO $ 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? (Hinti Calculate the differences between the two payment streams; then find its IRR.) Do not round intermediate calculations, Round your answer to two decimal places Check My Work (3 remaining) 0 Icon Key 3