$1.$ Consider a strip mall that has $50,000$ square feet. The rental rate is $$1$ per square foot per MONTH. Operating expenses are $40\%$ of revenue $($a standard assumption$).$ The current cap rate for retail space in Orange County is $7\%.$

a$.$ What is the expected sale price f

b$.$ If retail operating income is expected to remain flat, what is the expected rate of return on this investment?

c$.$ If retail operating income is expected to grow by $1\%$ per year over the next few years, what is the expected rate of return?

d$.$ You could, after buying this building, put in $$1,000,000$ worth of improvements that would allow you to raise the rent by $10\%($with zero growth$).$ Using the same cap, what would the sale price be$,$ after these improvements? $($Note that I am not asking you if this is a good idea.$)$