Question: (a) Knotweed Developments Ltd has secured an important concession from Casterbridge City Council under which it will not pay the full rent of 2.5 million

(a) Knotweed Developments Ltd has secured an important concession from Casterbridge City Council under which it will not pay the full rent of 2.5 million per annum until year 6 of the project but will pay a reduced rent of 250,000 per year for the first 5 years. This is to allow for Knotweed Development not being able to let all the properties during the construction phase of the project. What is now the value of Casterbridge City Councils investment in the lease?

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