Explain how would you price these two events differently

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You are a hospital administrator trying to raise capital to re-furbish the hospital. Your local bank is reluctant to lend to you because you already have a large mortgage on property on which the hospital complex lies. But your bankers tell you that they can lend you more if you reduce your debt by selling your parking lot to some private investors who would lease it back to you for the next 50years. Ilustrate what concern would you have about this sale and or lease back contract?

Assume your parking lot has two different consumers who use it at two different times to park at sporting events. Daily commuter demand is variable, yet stable and unknown. Demand for sporting events. Daily commuter event is uncertain, and depends on the quality of the match, as well as on unpredictable events, like the weather. Explain how would you price these two events differently?

Reference no: EM1359945

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