A property is expected to generate a stabilized NOI of $140,000 next year and the NOI is expected to increase by 1.5% per year. An investor intends on owning the property for 4 years. Similar properties have sold at 10% cap rates and cap rates are expected to remain constant for the foreseeable future. a) Determine the price the investor would be willing to pay for the property using the discounted cash flow approach for the investor's hold period. Assume a 6% discount rate on annual cash flows and a 10% discount rate on the terminal value. Answer: b) If the investor had instead used the Capitlized NOI valuation method, what would be the difference in the price they would be willing to pay for the property