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Question: suppose that as a lease you just signed a lease...

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Suppose that, as a lease, you just signed a lease to pay $1,000 per month (Annuity due) for 5 years. Simultaneously, you can sublease the property for $1,800 per month (Annuity due) for 5 years. What is the value of your leasehold interest at a discount rate of 12%?

a. $35,987

b. $36,324

c. $37,893

d. $38,329

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