A 4,000 square foot space is to be leased at an annual contract rent of $25 per square foot for five years. Due to difficulties in finding a tenant, the owner has offered a $20,000 cash incentive to secure the lease. The owner's required rate of return is 11%. What is the present value of this lease? O $8,333.33 $403,275.28 O $265,425.35 O $363,275.28

A 4,000 square foot space is to be leased at an annual contract rent of $25 per square foot for five years. Due to difficulties in finding a tenant, the owner has offered a $20,000 cash incentive to secure the lease. The owner's required rate of return is 11%. What is the present value of this lease? O $8,333.33 $403,275.28 O $265,425.35 O $363,275.28

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 9P

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