Abuilding owner is evaluating the following alternatives for leasing space in an office building for the next five years:
net lease with steps. rent will be sis per square foot the first year and will increase by $1.50 per square foot each year until the end of the lease. all operating expenses will be paid by the tenant.
net lease with cpi adjustments. the rent will be $16 per square foot the first year. after the first year, the rent will be increased by the amount of any increase in the cpi. the cpi is expected to increase 3 percent per year.
gross lease. rent will be $30 per square foot each year with the lessor responsible for payment of all operating expenses. expenses are estimated to be $9 during the first year and increase by $1 per year thereafter. gross lease with expense stop and cpi adjustment. rent will be s22 the first year and increase by the full amount of any change in the cpi after the first year with an expense stop at 9 per square foot. the cpi and operating expenses are assumed to change by the same amount as outlined above.

a. calculate the effective rent to the owner (after expenses) for each lease alternative using a 10 percent discount rate.
b. how would you rank the alternatives in terms of risk to the property owner?
c. considering your answers to parts (a) and (b), how would you compare the four alternatives?

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; i believe the answer is 40,600,000;

$2.00 for three shots.

someone i feel is a leader in my life id have to say would be my mother because she has give me great advice in life and got me out of tough situations. some characteristics she has are creativity, honesty, commitment, respect for others, and communication. one example of a situation when she demonstrated leadership was when i was working late on homework and i started to get stressed and got upset, she asked me if i needed some , and she me with my work. she demonstrated communication and commitment.

i don't know if this is exactly what your looking for but i hope this !