b)

Consider the following lease - Term: 5 years - Payments: annual at year end - Year-1 rent: $51 per square foot per year - Rent escalation: After the first year, rent payments are indexed to CPI Assuming a discount rate of 11%, what is the effective annual rent associated with this lease if you believe CPI will increase by 1% per year forever. Consider the following lease - Term: 5 years - Payments: annual, at year-end - Year-1 rent: $46 per square foot per year - Escalation: Rents step up by $2 per square foot each year beginning in the second year. What is the effective rent per square foot per year asocitated with this lease assuming a discount rate of 10% per year. Consider the following lease - Term: 5 years - Payments: annual at year end - Year-1 rent: $51 per square foot per year - Rent escalation: After the first year, rent payments are indexed to CPI Assuming a discount rate of 11%, what is the effective annual rent associated with this lease if you believe CPI will increase by 1% per year forever. Consider the following lease - Term: 5 years - Payments: annual, at year-end - Year-1 rent: $46 per square foot per year - Escalation: Rents step up by $2 per square foot each year beginning in the second year. What is the effective rent per square foot per year asocitated with this lease assuming a discount rate of 10% per year