Question
Sally in a local mall currently has a lease that calls for payments of $1,000 at...
Sally in a local mall currently has a lease that calls for payments of $1,000 at the end of each of the next 60 months. The landlord had offered a new 5 year lease that calls for zero rent for 6 months, then Rental payments of $1,050 at the end of each month for the next 54 months. Sally cost of capital is 12% should Sally’s accept the new lease ? Please explain your rationle?
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