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Solve for cash flows in a finance problem

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Reference no: EM13297287

Solve for Cash Flows in a finance problem. The question states : Abrey has a lease with 5 years remaining, and pays 2500 at month for rent. The owner has offered a deal, snce will be selling the property next year, to let Abrey pay 3,200 if she renews the lease for 5 more years, and the 1st year will get 9 months free, for the remainng 5 years until the lease expire, she wll keep paying the 3,200. Discount rate is 12 %. Shuould she accept or not?

Reference no: EM13297287

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