A property that you are considering for purchase is expected to generate cash flow of $45,000 in the coming year. After that, cash flow is expected to increase by 4% per year for the foreseeable future. Property values in the area for buildings of this type are expected to increase by 3% per year.

You would sell this property after 7 years, and have a required rate of return on such investments of 12%. Based on this information, what would be a fair value for this property today?