A property is leased for $24000 per year although market rents are currently $27500 per year and are expected to increase by 2% per year the property is expected to be sold at the end of year 10 based on a 10% terminal cap rate applied to the eleventh year NOI . The current lease on the property will expire at the end of year 10 so the property can be leased in the eleventh year at market rates . What is the value of the leased fee estate based on an 11.5% discount rate?

Please note that it can solve using equation rather than tables

Kindly show the formula and steps

Ans. = $251298