Question: A store has five years remaining on its lease and a mall rent is 1 9 0 0 per month 6 0 payments remain in

A store has five years remaining on its lease and a mall rent is 1900 per month 60 payments remain in the next payment is due in one month the male owner plans to sell the property in a year and wants to rent at that time to begin high so that the property will appear valuable therefore a store has been offered a great deal on a new five-year lease the new lease calls for no rent for nine months and payment of $2700 per month for the next 51 months the lease cannot be broken and the store is WCC is 12% or one percent per month. The store owner is not sure of the WAC it could be higher or lower at what normal WACC with the store owner be in different between the two leases

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