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A landlord has offered a tenant a 20-year lease with annual net rental payments of $30/SF in arrears. The appropriate discount rate is 8%. The

A landlord has offered a tenant a 20-year lease with annual net rental payments of $30/SF in arrears. The appropriate discount rate is 8%. The tenant has asked the landlord to come back with another proposal, with a lower initial rent in return for annual step-ups of 4% per year. What should the landlords proposed starting rent be?

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