Consider the following lease Term: 5 years Payments: annual at year end Year-1...
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Consider the following lease ● Term: 5 years • Payments: annual at year end ● Year-1 rent: $54 per square foot per year ● Rent escalation: After the first year, rent payments are indexed to CPI Assuming a discount rate of 11%, what is the effective annual rent associated with this lease if you believe CPI will increase by 2% per year forever. Consider the following lease ● Term: 5 years • Payments: annual at year end ● Year-1 rent: $54 per square foot per year ● Rent escalation: After the first year, rent payments are indexed to CPI Assuming a discount rate of 11%, what is the effective annual rent associated with this lease if you believe CPI will increase by 2% per year forever.
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The effective annual rent associated with this lease would b... View the full answer
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