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What is the maximum you would be willing to pay

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Reference no: EM133002525

Question - One of your tenants has ten years remaining on a lease at $3,500 per month. The space is now worth $4,000 per month. An adjacent tenant wants to expand their space, so you want to make arrangements to buy out the first tenant's lease in order to lease it to the expanding tenant at fair market value. The market discount rate is 10%. What is the maximum you would be willing to pay to buy out the lease?

Reference no: EM133002525

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