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1. You signed a rental lease for an office space in the Back Bay for five years with an annual rent of $1 million, paid
1. You signed a rental lease for an office space in the Back Bay for five years with an annual rent of $1 million, paid at the beginning of each year of the lease. Just before you pay your first rent, the property owner wants to use the space for another purpose and proposes to buy back the lease from you. The rent for similar space is now $1.25 million per year. What would be the minimum compensation that you would ask from the property owner? Assume the interest rate to be 6%. (3 points)
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