Specialty shop in local mall currently has lease

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Reference no: EM131078258

A specialty shop 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 has 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's cost of capital is 11%. Should Sally's accept the new lease? Please explain your rationle.

Reference no: EM131078258

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