Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A 1,000-square-foot office space is leased at $15.00 per square foot during the first year with $2.00
step-up provisions each of the following years. The lease is gross with an expense stop set at $6.65 per
square foot, and yearly expenses per square foot are as follows: $6.00, $6.65, and $7.05. The lease
provides for two months of free rent at the end of the lease term. If the lease term is three years and the
discount rate is 10 percent, what is the effective rent per square foot?
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Transcribed Image Text:A 1,000-square-foot office space is leased at $15.00 per square foot during the first year with $2.00 step-up provisions each of the following years. The lease is gross with an expense stop set at $6.65 per square foot, and yearly expenses per square foot are as follows: $6.00, $6.65, and $7.05. The lease provides for two months of free rent at the end of the lease term. If the lease term is three years and the discount rate is 10 percent, what is the effective rent per square foot?
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