An investor is considering the purchase of a small office building. The $N\frac{O}{?}$ is expected to be the following: Year $1,$$$210,000$; Year $2,$

$$220,000$; Year $3,$ $$230,000$; Year $4,$ $$240,000$; Year $5,$$$250,000.$ 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 yearduring 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.

Required:

a$.$ What should be the present value of the property today?

b$.$ What should be the property value $($REV$)$ at the end of year $5$ in order for the investor to earn the $10\%$ IRR?

c$.$ Based on your answer in $($b$),$ if the building could be reproduced for $$2,400,000$ today, what would be the underlying value of the

land?

Complete this question by entering your answers in the tabs below.

Required B

What should be the present value of the property today?

Note: Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.