A tenant is calculating the equivalent level rent $($ELR$)$ on a potential $10-$year office lease

with monthly payments $($which will be made at the beginning of the month$).$ The space

under consideration is $10,000$ square feet. The fixed monthly payment will be $$20\mathrm{.}00$ per

square foot per year. After considering all of the cash inflows and outflows on the lease

over the $10-$year period, the tenant calculates that the present value $($cost$)$ of the lease is

$$2,000,000.$ The tenant is using a $5\%$ discount rate to calculate the PV of the lease.

What is the $($annualized$)$ ELR per square foot $($rounded to two places to the right of the

decimal$)?$

$$20\mathrm{.}00$

$$26\mathrm{.}72$

$$25\mathrm{.}46$

$$19\mathrm{.}36$

$$25\mathrm{.}35$