you have just inherited an office building you expect the annual rental income (net of maintenance and other costs) for the building to be $100000 for the next year and to increase 5% per year indefinitely. expanding internet company offers to rent the building at a fixed annual rent for 5 years after 5 years you could re-negotiate or rent the building to another tenant what is the minimum acceptable fixed rental payment for this five years agreement. Use a discount rate of 12%