Suppose you are the owner who paid 800,000 with an interest rate of 10% and renting at $ 34/sq ft If the expenses are $5/sq ft in Year 1, increasing by $1/yr thereafter, what is the effective net rent for the first 5 years? If the rent increases by $2/sq ft each year thereafter, and the expenses are $5/sq ft in Year 1, increasing by $1/yr thereafter, what is the effective net rent for the first 5 years? If the rent increases by $2/sq ft each year thereafter, and the expenses are $5/sq ft in Year 1, increasing by $1/yr thereafter. The expense stop is $7/sq ft, what is the effective net rent for the first. Show work to include the amount per sq foot.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Suppose you are the owner who paid 800,000 with an interest rate of 10% and renting at $
34/sq ft
If the expenses are $5/sq ft in Year 1, increasing by $1/yr thereafter, what is the effective
net rent for the first 5 years?
If the rent increases by $2/sq ft each year thereafter, and the expenses are $5/sq ft in Year 1,
increasing by $1/yr thereafter, what is the effective net rent for the first 5 years?
If the rent increases by $2/sq ft each year thereafter, and the expenses are $5/sq ft in Year 1,
increasing by $1/yr thereafter. The expense stop is $7/sq ft, what is the effective net rent for
the first.
Show work to include the amount per sq foot.
Transcribed Image Text:Suppose you are the owner who paid 800,000 with an interest rate of 10% and renting at $ 34/sq ft If the expenses are $5/sq ft in Year 1, increasing by $1/yr thereafter, what is the effective net rent for the first 5 years? If the rent increases by $2/sq ft each year thereafter, and the expenses are $5/sq ft in Year 1, increasing by $1/yr thereafter, what is the effective net rent for the first 5 years? If the rent increases by $2/sq ft each year thereafter, and the expenses are $5/sq ft in Year 1, increasing by $1/yr thereafter. The expense stop is $7/sq ft, what is the effective net rent for the first. Show work to include the amount per sq foot.
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