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OUI Question 9 Generally speaking, why is it better to compare leases based on effective rent rather than on the NPV of the two streams
OUI Question 9 Generally speaking, why is it better to compare leases based on effective rent rather than on the NPV of the two streams of cash flows? (Select the one true reason) Effective rent accounts for the fact that the lease terms (e.g., a 5 year vs, a 10 year leases) may pe different O NPV accounts for one-time upfront tenant improvements and effective rent does not o Effective rent is on a per square foot bases, allowing for comparison of leases with different rentable areas O Effective rent accounts for differences in default risk across prospective tenants
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