Accor is considering to buy an economy hotel in Dallas. The prevailing market discount rate for the economy hotel subsegment in Dallas is 10%. The expected NOI for the next 6 years is shown on the right. The WACC for this project is 8%. Accor is considering a 5-year holding period for this investment. The going-in cap rate is 7% for this hotel subsegment however Accor expects the going-out cap rate for this investment to be higher than the going-in rate by 25 basis points.

Year 0-

Year 1 - $100,000

Year 2- $118,000

year 3- $123,000

Year 4- $126,000

Year 5- $130,000

Year 6 - $142,000

What is the estimated selling price of the hotel at the end of year-5 assuming income stabilizes after year 5?