An investor is considering the purchase of a small apartment building. The NOI is

expected to be the following: year $1,$$$200,000$; year $2,$$$210,000$; year $3,$$$220,000$; year

$4,$$$230,000$; year $5,$$$240,000.$ The property will be sold at the end of year $5$ and the

investor believes that the property value should have appreciated at a rate of $3$ percent

per year during the five$-$year period. The investor plans to pay all cash for the property

and wants to earn a $10$ percent return on investment $($IRR$)$ compounded annually.

a$)$ Please list the NOI from year $1$ to year $5$ and compute the present values of NOI

for each year.

b$)$ What should be the reversion value $($REV$)$ at the end of year $5?$

c$)$ What should be the present value of the property today?