What is the corresponding effective rent when evaluated


The law firm of Saul Goodman and Associates must choose between two different leases for their new space. The first lease, Lease A, is a 5-year gross lease with a base rent of $36.25/sf. If rents will increase by $1.00/sf each year and the cash flows from the lease are discounted at 6%, what is the corresponding effective rent when evaluated from the tenant's perspective?

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Financial Management: What is the corresponding effective rent when evaluated
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