Square footage requirements and effective utilization

Assignment Help Financial Accounting

Reference no: EM1314334

Square footage requirements and effective utilization.

Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like lease space in it. Each business will pay a fixed amount of rent each month plus a percentage of the gross sales generated each month. The cash flows from each of the businesses have approximately the same amount of risk. The business names, square footage requirements, and monthly expected cash flows for each of the businesses that would like to lease space in your strip mall are provided below:

Business Name	Square Feet Required	Expected Monthly Cash Flow
Videos Now	4,000	70,000
Gords Gym	3,500	52,500
Pizza Warehouse	2,500	52,500
Super Clips	1,500	25,500
30 1/2 Flavors	1,500	28,500
S-Mart	12,000	180,000
WalVerde Drugs	6,000	147,000
Multigular Wireless	1,000	22,250

Show calculations
a) If you're new strip mall will have 15,000 square feet of retail space available to be leased, to which businesses should you lease and why?
b) If you're new strip mall will have 16,000 square feet of retail space available to be leased, to which businesses should you lease and why?

Reference no: EM1314334

Questions Cloud

Expansion for solow growth model : According to the Solow growth model, a country that increases its rate of capital investment can overcome diminishing marginal returns to capital and achieve sustained high growth over time.

Determination of nominal interest rate in money market : Explain how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.

Explain finding the required rate of return and valuation : Explain Finding the required rate of return and valuation of Preferred Stock where Preferred stock valuation Ezzell Corporation issued perpetual preferred stock with a 11% annual dividend

Hypothesis test and population mean : At the 5 percent level of significance, can we conclude that the mean weight is greater than 16 ounces? Determine the p- value.

Square footage requirements and effective utilization : Square footage requirements and effective utilization - If you're new strip mall will have 15,000 square feet of retail space available to be leased, to which businesses should you lease and why?

Labour mobility and unemployment rate : Discuss how labor market mobility affects the unemployment rate.

Sample mean and t-test : At the .01 significance level, can we conclude that the 30-yeer mortgage rate for small banks is less than 6 percent? Estimate the p -value.

Calculation of stock price and required rate of return : Calculation of stock price and required rate of return and What is the required rate of return

Journal entries for estimated bad debts : Journal entries for estimated bad debts provision and provide the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% gross accounts receivable and (b) 1% of net sales.

User Account

All Pages