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Consider the following lease Term: 5 years Payments: annual at year end Year-1 rent: $54 per square foot per year Rent escalation: After the

Consider the following lease- Term: 5 years- Payments: annual at year end- Year-1 rent: ( $ 54 ) per square foot per ye

Consider the following lease Term: 5 years Payments: annual at year end Year-1 rent: $54 per square foot per year Rent escalation: After the first year, rent payments are indexed to CPI Assuming a discount rate of 11%, what is the effective annual rent associated with this lease if you believe CPI will increase by 2% per year forever.

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