29. You have finished projecting a property's cash flow (see below) and are now faced with the responsibility of determining how much you should pay for the cash flows. ( 6pts ) a. Assuming a 6.5% exit cap rate, a 7.0% discount rate and a 10 year holding period, what should you pay for the investment? b. Assuming your purchase price in the prior question, what is the going-in cap rate? c. Capital is aggressively bidding this asset and the broker informs you that to win the bidding, you will need to raise your bid by 5%. If you were to meet the broker's pricing guidance, what is your fundamental concern given the revised pricing as a fiduciary of your client's capital? 29. You have finished projecting a property's cash flow (see below) and are now faced with the responsibility of determining how much you should pay for the cash flows. ( 6pts ) a. Assuming a 6.5% exit cap rate, a 7.0% discount rate and a 10 year holding period, what should you pay for the investment? b. Assuming your purchase price in the prior question, what is the going-in cap rate? c. Capital is aggressively bidding this asset and the broker informs you that to win the bidding, you will need to raise your bid by 5%. If you were to meet the broker's pricing guidance, what is your fundamental concern given the revised pricing as a fiduciary of your client's capital