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You own an office building that is currently vacant but are entertaining offers from two different potential tenants for a 5 - year term. One
You own an office building that is currently vacant but are entertaining offers from two different potential tenants for a year term. One offer is a year lease starting with rent of $ next year and will increase at per year. The other potential tenant prefers a fixed lease payment that will not increase over the year lease. What is the minimum fixed annual rental payment you would accept for a fiveyear agreement? Use a discount rate of
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