A company is looking for a retail property to buy. Its market analysis shows that based on current market supply and demand, trends in rents and per square foot operating and other expenses, the estimated net operation income amounts will be as follows. For the first three years it estimates $700,000 for the annual net operating income. During the following two years, market rents are expected to be higher, increasing the estimated net operating income by $60,000 each year. It is further expected that after that all the way through year 7, the net operation income will reflect a stable, balanced market and should grow at 4 percent per year. The company also considered past trends in real estate prices and believes that the building value will be appreciating by 3 percent per year up to and including the year of sale. The company believes that 13 percent return is appropriate for an investment of this kind in this real estate sector. In the calculations below, for dollar amounts don't use the "$" sign, and round to whole dollar. For any percentages, put, for example, 1.23 if you got "1.23 percent". If you can, do the math in Excel with correct referencing to cells with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places - the more the better! Say, 6 or even higher. In the table below, fill out the estimated annual amounts of net operating income for the company's planned holding period. $ Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $ $ $ $ $ The estimated Reversion value equals $ The estimated current value of the retail property equals $ - (Type a The estimated going-in cap rate equals percent, and the cap rate formula uses the net operating income from year number, no decimals. E.g., type 10 if your answer is "Year 10"). (Type The estimated going-out cap rate equals percent, and the cap rate formula uses the net operating income from year a number, no decimals. E.g., type 10 if your answer is "Year 10"). (Type a For this investment, the shorter the holding period, the_the reversion value, the_ the current value, and the _ the going-in rate. I pick number that corresponds to your answer from the options in the table below. E.g., type 1 if you pick the first row.) 1 higher, higher, higher 2 higher, higher, lower 3 higher, lower, higher 4 lower, lower, lower 5 lower, lower, higher 6 lower, higher, lower