The XYZ Company has a choice between two warehouses. A lease at location A  costs $1000 per month with a payment of $2000 up front to guarantee the 3 year lease. Location B would cost $1200 per month and would be leased  from month to month. The anticipated revenue in either location is $1500 per month. The estimated rate of return is 10% per year. Using net  present value, determine which location would be the better choice.

    

 

Answer rating: 100% (QA)

Assumptions Rate 10 yearly Number of period n 36 Step 1 Find t... View the full answer