2.5 pts
Your firm enjoys the benefit of a (beginning of) month lease payment of $3,000, which is
$1,500 below the current market rent for your space. You have five years (60 months)
remaining on your lease. Your cost of capital (discount rate) is 15 percent. Your landlord
has approached you and asked what she would have to pay you in cash today to make you
willing to rewrite your lease so that you are paying market rent for the remaining five
years.
What is the minimum payment you would require from the landlord as compensation for
giving up the advantageous rental rate? Round your answer to the nearest dollar.
? $69,390
? $63,052
O $60,339
? $63,840
None of the selections is correct