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Benedic Clarke is the landlord of a retail shopping center commonly known as Tulaberry Plaza, and is deciding on how to fill the anchor tenant

Benedic Clarke is the landlord of a retail shopping center commonly known as "Tulaberry Plaza", and is deciding on how to fill the anchor tenant space of 14,228 square feet. He has received three bids: Harbor Freight ($18.75/sqft/year,15 year term, 2% annual rent escalation), PetSmart ($18.75/sqft/year,10 year term, 2% annual rent escalation), and Planet Fitness ($18.75/sqft/year,20 year term, 10% rent escalation every five years).
What is the total discounted cash flows (DCF) of each potential lease contract? Use the discount rate in parentheses. Each discount rate is set to reflect the risk premium associated with each tenant. Hint: Construct an excel sheet that outlines the schedule of potential gross rent for each tenant.

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