N [The following information applies to the next five questions. You own a small office building that currently has one floor with 2000 square feet vacant. Three potential tenants come to you with the following 5-year lease proposals, all of which involve annual rent payments paid in arrears, Tenant A proposes that rent start at $20 psf and increase by 3% annually Tenant B proposes flat rent of $21 psf Tenant requests free rent in the first year, rent in year 2 of $24 psf, and thereafter escalate by 2% annually. ck Suppose that prospective Tenant C really wants the space and is willing to up his offer to get it. Tenant C still insists on free rent in year 1 but is willing to pay higher rent in year 2 and still offer you 2% annual rent escalation in years 3-5 based on the rent in year 2. If the appropriate discount rate for all three prospective tehants is 5%, what is the minimum rent Tenant C has to offer you in year 2 for him to win out over Tenants A and B