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PLEASE SHOW ALL STEPS WITH EXCEL!!! I NEED TO UNDERSTAND HOW TO DO IT! 4. Suppose in a certain property market the typical lease term
PLEASE SHOW ALL STEPS WITH EXCEL!!! I NEED TO UNDERSTAND HOW TO DO IT!
4. Suppose in a certain property market the typical lease term is 5 years, the cap rate (cash yield) is 8%, long term property value and rental growth rate is 2.0% per year, leases provide rent step-ups of 2.0% per year (per the expected growth rate), and the tenant borrowing rate (intralease discount rate) is 6%. What is the appropriate inter-lease discount rate? 4. Suppose in a certain property market the typical lease term is 5 years, the cap rate (cash yield) is 8%, long term property value and rental growth rate is 2.0% per year, leases provide rent step-ups of 2.0% per year (per the expected growth rate), and the tenant borrowing rate (intralease discount rate) is 6%. What is the appropriate inter-lease discount rateStep by Step Solution
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