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A small retail center has 1,475 square foot for rent. It has a current lease ending in two years with a contract rent of $11

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A small retail center has 1,475 square foot for rent. It has a current lease ending in two years with a contract rent of $11 per year per square foot. At the end of year 2, the investor expects to resell the property at a terminal capitalization rate of 10%. The sales cost is 5% of the resale price. The rent for year 3 is projected at the market rent level of $18 per year per square foot, and the NOI grows at a rate of 2% beyond year 3. The collection cost is.5% of the potential gross income. The capitalization rate for the net cash flow is 11%, and all cash flows happen at the end of each year. Expenses include taxes, maintenance, management, and replacement allowance. Taxes for the first year are $7,500 and increase by $700 per year. Maintenance is $2,212 for the first year and increases by $200 per year. Management is 5% of effective gross income. Replacement allowance happens at the beginning of the first year and is $112,000. Potential gross income is the revenue from rents. Effective gross income is the potential gross income less collection loss. NOI (Net operating income) is the effective gross income less the expenses. Please fill in the blank below: 0 stands for the beginning of the first year, 1 for the end of the 1st year, and 2 for the end of the 2nd year. Round your answers to the nearest.01. 1 2 Year 0 Net cash flow NPV IRR

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