1. An investor expects to hold a potential property acquisition for 10 years. NOI at the end of year 10 is projected to be $300,000: NOI at the end of year 11 is forecasted to be $310,000. The going-in cap rate is 6.0%; the appropriate going-out cap rate is determined to be 6.7%. The estimate sale price at the end of year 10 is ______.

The correct answer is $4,626,866. Please show the step-to-step solution.

2.A commercial real estate investment can be acquired for $100,000 in equity capital and is expected to produce a net cash flow to the investor of $33,439 at the end of each year for five years. The internal rate of return on equity is approximately equal to ______ percent.

3.As the required internal rate of return increases, the calculated net present value will____.( increase or decline?)