Question
Consider the following lease Term: 5 years Payments: annual at year end Year-1 rent: $52 per square foot per year Rent escalation: After the first
Consider the following lease Term: 5 years Payments: annual at year end Year-1 rent: $52 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.
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Handbook Of Alternative Assets
Authors: Mark J. P. Anson
2nd Edition
047198020X, 978-0471980209
