Specializing in the sale of opuses solely depicting

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Assume that a department store, specializing in the sale of opuses solely depicting Domus Italica, has 6years remaining on its lease in a mall. Rent is $2,500 per month, 72payments remain, and the next payment is due in a month. The mall’s owners, Anais and Amanda, plan to sell the property in a year and want the rent at that time to be high so that the property will appear more valuable. Therefore, the store has been offered a great deal on a new 6-yr lease. The new lease calls for no rent the first 12 months, then payments of $3,500 per month for the next 60months. The lease cannot be broken and the store’s WACC is 15%.

Should the new lease be accepted?

Reference no: EM13768818

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