A freehold property is let at $2,000,000$ per annum for the next

three years, after which the rent is to be increased under a

$$stepped rental$$ agreement to $2,500,000$ per annum for the following

four years. After seven years there will be a rentreview at which time the market rent, which is at present

estimated at $3,000,000$ per annum, will become payable. The hardcore

rent is adjudged to represent a $6\%$ risk rate, with each rental

increase being considered an additional $1\%$ risk.