Math Solutions

[Steps Shown] Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like lease space in it. Each business will pay

Question: Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like lease space in it. Each business will pay a fixed amount of rent each month plus a percentage of the gross sales generated each month. The cash flows from each of the businesses have approximately the same amount of risk. The business names, square footage requirements, and monthly expected cash flows for each of the businesses that would like to lease space in your strip mall are provided below:

Business Name Square Feet Required Expected Monthly Cash Flow
Videos Now 4,000 70,000
Gords Gym 3,500 52,500
Pizza Warehouse 2,500 52,500
Super Clips 1,500 25,500
30 1/2 Flavors 1,500 28,500
S-Mart 12,000 180,000
WalVerde Drugs 6,000 147,000
Multigular Wireless 1,000 22,250

Required: If your new strip mall will have 16,000 square feet of retail space available to be leased, to which businesses should you lease and why? (10 marks)

Price: $2.99
Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document


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