1. Tiger Investment Company is considering the purchase of an office property. After a careful review of the market and the leases that are in place, Tiger Investment Company believes that next year's cash flow will be $100,000. It also believes that the cash flow will rise in the amount of $7,000 each year for the foreseeable future. It plans to own the property for at least 10 years. Based on a review of sales of properties that are now 10 years older than the subject property, Tiger Investment Company has determined that cap rates are in a range of 15. Tiger Investment Company believes that it should earn an IRR (required return) of at least 12 percent What is the estimated value of this office property (assume a 15 terminal cap rate)