5. Consider an investor with a 6 year investment horizon, evaluating an income producing property. The property may currently be purchased for $2,400,000. Last year's NOI of $160,000 is projected to grow at 5% annually into the foreseeable future. The reinvestment rate is 11%. At the end of the investor's holding period, cap rates are expected to 8% on properties of this nature. 1) what is the total return offered by this investment? ( 10points) 2) Decompose the expected return on our 6 year investment property. (10 points)