The cpi is expected to grow by 2 for the next two years and


Find the effective rent for each option given the following lease conditions over the next 5 years using a 12% discount rate: Net lease with CPI adjustment. Rent is $35/sqft the first year and increases by 100% of any CPI increase. The CPI is expected to grow by 2% for the next two years and 4% thereafter. The tenant pays all the operating expenses.

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Finance Basics: The cpi is expected to grow by 2 for the next two years and
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