Question: James also informs Don that the lease contract can include a cancellation option. The cancellation option would allow WMEL to cancel the lease on any

James also informs Don that the lease contract can include a cancellation option. The cancellation option would allow WMEL to cancel the lease on any anniversary date of the contract. In order to cancel the lease, WMEL would be required to give

30

days

notice prior to the anniversary date. How would the inclusion of a cancellation option affect the value of the lease?

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