Cleveland Browns are looking at the following alternatives to sign a 6-year lease on 8,000 square feet of usable area in building ZANQULL, located in Berea, Ohio. That office space translates to A rentable area of 9,200 square feet (RSF). The Owner of the building has offered the following Lease Alternatives. Alternative A: Rent at $21.00/RSF for years 1, 2 and 3. The rate will increase to $30/RSF for years 4, 5 and 6. Browns must also pay operating expenses, $10/RSF in the first year and expected to escalate at 6% annually. Browns will receive a payment of $8,000 at the time of signing of the lease. Alternative B: Rent at $34/RSF held constant for the six years. Browns will not pay any base operating expenses but will have to pay yearly increases over the base amount set in the first year. The operating expenses will be borne by the property owner. Browns will receive a payment of $12,000 at the time of signing of the lease. Cleveland Browns Cost of Capital is 10%. Which is the better lease for the Browns? Rationalize using financial analysis. What is the net rate in $/RSF paid by Browns?