(Answered) Question a landlord has offered a tenant a five-year lease

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Question: A landlord has offered a tenant a five-year lease with annual net rental payments of $20/SF in arrears. The appropriate discount rate is 10%. The tenant has asked the landlord to come back with another proposal, similar in every way except with rent that steps up annually at a rate of 5% per year, in return for a lower starting rent. What should the landlord's proposed starting rent be?

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