A property owner is evaluating the following alternatives for leasing space in a warehouse for the next six years:$($a$)$Net lease with steps. Rent will be Sh$\mathrm{.}20$ per square foot the first year and will increase by Sh$\mathrm{.}2$ per square foot each year until the end of the lease. All operating expenses will be paid by the tenant.$($b$)$ Net lease with CPI adjustments, The rent will be Sh$\mathrm{.}24$ per square foot the first year. After the first year, the rent will be increased by the amount of any increase in the CPI. The CPL is expected to increase $6\%$ per year.$)$ Gross lease. Rent will be Sh$\mathrm{.}37$ per square foot each year with the lessor responsible for payment of all operating expenses. Expenses are estimated to be Sh$\mathrm{.}7$ during the first year and increase by $8$h$.1$ per year thereafter,$($d$)$ Cross lease with expense stop and CPl adjustment. Rent will be Sh$\mathrm{.}30$ the first year and increase by the full amount of any change in the CPI after the first year with an expense stop at Sh$.$ per square foot. The CPI and operating expenses are assumed to change by the same amount as outlined above.Required$($i$)$ Caleulate the effective rent for each lease alternative using a $15\%$ discount rate. $(16$ marks$)($ii$)$Which alternative should the property owner select? $(5$ marks$)($iti$)$ Would your answer change if was a tenant doing the analysis? $(4$ marks$)$