Homework Answers
Step us Lease : Step up lease is basically a lease for providing lessee and option to pay in future. In our example if the gross step up lease is set up, the lessee would have to pay as follow at the end of year 5:
| Year | Gross Rents | Opearting Expenses | Net Rent |
| 1 | 25.00 | 12.00 | 13.00 |
| 2 | 25.75 | 12.24 | 13.51 |
| 3 | 26.52 | 12.48 | 14.04 |
| 4 | 27.32 | 12.73 | 14.58 |
| 5 | 28.14 | 12.99 | 15.15 |
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