PLEASE PROVIDE THE CORRECT ANSWER WITH EXPLANATION

Suppose we have a 3-year gross lease with expense stop and CPI adjustments. Rent will be $10 per square foot the first year and increase by the full amount in the CPI after the first year. The CPI is expected to increase 3% during the second year and 2% during the third year. The lessor is responsible for operating expenses up to 55 per square foot Expenses are estimated to be $5 during the first year and increase by $1 per year thereafter. Assuming a discount rate of 10%, which of the following is the closest to the effective rent of this lease. $13.45 $15:21 $17.89 $19.15