1. What is the effective annual rent for Lease 1 and Lease 2? When you compute the answer, assume the annual discount rate is 7%. Also assume annual rents are paid once per year.

   1. Lease 1 is 5 years. The base rent in 2020 is $13.50 per square foot per year. Each year, the base rent increases by $0.50 per year.

Lease 2 is 6 years. The base rent in 2020 is $13.00 per square foot per year. Each year, the base rent increases by 5% per year.

Answer rating: 100% (QA)

Effective Annual Rent Calculation Heres how to calculate the effective annual rent for Lease 1 and L... View the full answer