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Consider the following lease Term: 5 years Payments: annual, at year-end Year-1 rent: $48 per square foot per year Escalation: Rents step up by $2

Consider the following lease Term: 5 years Payments: annual, at year-end Year-1 rent: $48 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.

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