Question: I am working on Chapter 30, Problem 13SQ (Valuing a Lease Renewal Option) in the textbook Commercial Real Estate Analysis and Investments (with CD-ROM) (2nd

I am working on Chapter 30, Problem 13SQ (Valuing a Lease Renewal Option) in the textbook Commercial Real Estate Analysis and Investments (with CD-ROM) (2nd Edition), and I found the solution on Chegg (link below).

https://www.chegg.com/homework-help/Commercial-Real-Estate-Analysis-and-Investments-with-CD-ROM--2nd-edition-chapter-30-problem-13SQ-solution-9780324305487

I don't understand the solution for Step One, solving for the present value of a 5-year net lease at the rate of $15/SF and provision of 1-year free rent. The solution provided by Chegg is LPV= $47.54798. I created an Excel spreadsheet and keep getting: LPV= $45,589 or NERR of $11.45.

Can you please provide the step-by-step solution for calculating in Excel, the present value of a 5-year net lease at the rate of $15/SF and provision of 1-year free rent?

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