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What Is the Effective Rent Under 10% Discount Rate Assumption)

Question 17

Multiple Choice

What is the Effective Rent under 10% discount rate assumption) for a 7-year net lease with rent fixed at $20/SF, in which the landlord agrees to give the tenant one year free rent up front and to pay for $10/SF worth of tenant improvements?


A) $14.40
B) $15.84
C) $16.26
D) $18.13
E) $20.00

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