At what lease payment amount on the second lease would the


Genesco is considering two alternative 5-year leases. The first lease is for $2,400 per month for 60 months. The second lease has no rent for the first 9 months, and then even monthly payments for the remaining 51 months. The company uses a WACC of 12% (monthly discounting of 1% per month) to evaluate these types of situations. At what lease payment amount on the second lease would the company be indifferent between these two options?

Your answer should be between 2000.00 and 3000.00, rounded to 2 decimal places, with no special characters.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: At what lease payment amount on the second lease would the
Reference No:- TGS02716214

Expected delivery within 24 Hours