____ 5. Five years ago Kubendran entered into a 10-year lease on 45,000 square feet of industrial warehouse space at R2.50 per square foot. Now, market rent for comparable space over the next five years are R3.50 per squarefoot. What is the value of Kubendran's leasehold interest if his cost ofcapital is 12 percent?

1. R112,500
2. R162,215
3. R405,537
4. R567,752
5. None of the above; the correct answer is __________.