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[Note: The information presented here applies to questions 11,12&13]. The law firm of Saul Goodman and Associates must choose between two different leases for their
[Note: The information presented here applies to questions 11,12&13]. The law firm of Saul Goodman and Associates must choose between two different leases for their new space. The first lease, Lease A, is a 5 -year gross lease with a base rent of $36.25/sf. If rents will increase by $1.00/ sf each year and the cash flows from the lease are discounted at 6%, what is the corresponding effective rent when evaluated from the tenant's perspective? Question 12 1 pts The second lease, Lease B, is a 5-year net lease with a base rent of $25/ sf with expenses expected to be $10/ sf in the first year. If rents will increase by $1.00/sf each year and expenses by 5% a year, what is the corresponding effective rent from the tenant's perspecitive if cash flows are discounted at 6% annually? Question 13 1 pts Which lease is preferred by the law firm
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