Ace Investment Company is considering the purchase of the Apartment Arms project. Next year$$s NOI and cash flow is expected to be $$2,120,000,$ and based on Ace$$s economic forecast, market supply and demand and vacancy levels appear to be in balance. As a result, NOI should increase at $4$ percent each year for the foreseeable future. Ace believes that it should earn at least a $13$ percent return on its investment.

Required:

a$.$ Assuming the above facts, what would the estimated value for the property be now?

b$.$ What going$-$in cap rates should be indicated from recently sold properties that are comparable to Apartment Arms?

c$.$ What would the estimated value for the property, if the required return changes to $12$ percent?