A prospective tenant has presented a lease proposal to the owner of an office building. The lease has a five-year term and a contract rental rate of $16.00 per square foot in the first year of the lease ($1.33 per month). The rental rate then steps up 3 percent at the end of each year over the remainder of the lease term. So, for example, the rental rate in year 2 (months 13 to 24) would be $16.48. Required: a. What are the projected monthly payments over the five-year term? Note: Do not round intermediate calculations. Round your answers to 3 decimal places. b. What is the present value of the monthly lease payments assuming an 8 percent (annual) discount rate (and beginning of month payments)? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. Projected monthly payment year 1 Projected monthly payment year 2 Projected monthly payment year 3 Projected monthly payment year 4 Projected monthly payment year 5 b. Present value