20 Suppose you are given the following information on an income-producing property: Subject Property Number of apartments Market rent (per month) Vacancy and collection losses Operating expenses 5% of EGI Capital expenditures 1200 10% of PGI 10% of EGI Determine: 1) The net operating income (Not) for the first year of operations of the subject property using "above-line" treatment of capital expenditures: $ 2) If you have determined the overall capitalization rate to be 14.25%, what is the indicated value of the subject using direct capitalization model? 3) Suppose the property is expected to yield a constant cash flow for the owner in each of the next five years, with cash flows being received at the end of each period. If the opportunity cost of investment is 5% annually and the property can be sold for $1,000,000 at the end of the fifth year and incur selling expenses that amounted to $50,000, determine the value of the property today using discounted cash flow model. $