This capital budgeting problem is a bit more difficult to evaluate than it would seem because we have two projects with differing limelines$.$ Here is the probiem. I am evaluating the placement of two different tenants into a tenant space I have avalable at one of our centers. I only have the one space so I need to select the best ogtion for my company from these two tenants. The space is a $1,000$ square foot office space. One tenant has offered to rent it for $$24,000$ per year for $3$ years. They want the suite painted and carpeted by me for the cost of $$6,000.$ The other tenant wants the space for $6$ years but wit only pay me $$21,600$ per year They onty wart new carpeting at a cont to me of $$4,000.$ Which tenant should I pursue if my cost of capital is $12\%?$

This problem is worth $10$ points if you calculate out the IRR and the NPV correctly for each Tenant. If you properly identify the tenant I should select WITH correct rationale, you will earn $10$ BONUS Points"