To which businesses should lease and why

Assignment Help Accounting Basics

Reference no: EM13257913

Your firm is preparing to open a new retail strip mall and youhave multiple businesses that would like lease space in it. Each business will pay a fixed amount of rent each month plus apercentage of the gross sales generated each month. The cashflows from each of the businesses have approximately the sameamount of risk. The business names, square footagerequirements, and monthly expected cash flows for each of the businesses that would like to lease space in your strip mall areprovided below. If your new strip mall will have 15,000 square feetof retail space available to be leased, to which businesses shouldyou lease and why?

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

Reference no: EM13257913

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