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store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due

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store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due in 1 month. The mall's owner blans 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 $2,600 per month for the next 51 months. The ease 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.) b. If the store owner dedided 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 lease's original cost at t=9; then treat this as the PV of a 51 -period annuity whose payments represent the rent during manths 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-it could be higher or lower. At what naminal WACC would the store owner be indifferent between the two leases? (Hint: Calculate the differences between the two payment streams; then find its IRR.) Do not round intermediate calculations. Plound your answerto two decimal places. Project A requires an initial outlay at t=0 of $2,000, and its cash flows are the same in Years 1 through 10 . Its tRR is 17%, and its WacC is 11%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. A project has the following cash flows: i tus project requires two outflows at Years 0 and 2, but the remaining cash flows are positive. Its WACC is 13%, and its MiRR is 16.17%, What is the Yeac 2 cash outflow? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent. $

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