Benefit of the remodeling project to corporation x

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Corporation X is considering remodeling a building that it leases to a retail store. The remodeling costs are estimated at $2.15 million. If it goes ahead with the project, the tenant has agreed to pay an additional $750,000 a year in rent for the next 4 years. The discount rate is 13 percent. What is the benefit of the remodeling project to Corporation X?

A.$187,457.39

B.$80,853.49

C.-$279,146.51

D.-$71,551.76

Reference no: EM131954619

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