After getting her Masters degree in marketing and working for 5 years for a large...
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After getting her Masters degree in marketing and working for 5 years for a large department store, Sally Fraser started her own specialty shop in a regional mall. Sally's current lease calls for payments of $1,000 at the end of each month for the next 60 months. Now the landlord offers Sally a new 5-year lease which 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 10.5 percent. By what absolute dollar amount would accepting the new lease change Sally's theoretical net worth? Show your calculations.
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