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. You are considering the purchase of an old office building. The property is currently zoned for commercial use, but you believe a change of zoning can be achieved with some effort. You consider three uses for te property: 1) perform some minor renovations and leave the property as an office; 2) converst the current structure into apartments with significant renovation; 3) demolish the current structure and build a gas station in its place. Your research has lead you to the following estimates with regard to these three scenarios 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. You are considering the purchase of an old office building. The property is currently zoned for commercial use, but you believe a change of zoning can be achieved with some effort. You consider three uses for te property: 1) perform some minor renovations and leave the property as an office; 2) converst the current structure into apartments with significant renovation; 3) demolish the current structure and build a gas station in its place. Your research has lead you to the following estimates with regard to these three scenarios