What is the corresponding effective rent

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Reference no: EM131861638

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?

Reference no: EM131861638

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