An investor would like to buy an office building currently occupied by Pumpkin Pie Recipes Unlimited Co., LTD. The planned holding period is 4 years. It obtained Pumpkin Pie Recipes Unlimited Co., LTD's rental agreement, as well as a report on vacancies and various operating expenses for local buildings on a per square foot basis, which allowed the investor to estimate the net operating income (NOI) for this office building for the next several years. In fact, what the investor figured out is that the NOI will equal $800,000 at the end of the 1st year, and will then increase by $60,000 each year for three more years, after which it will increase by 7% per year indefinitely.

Investor's required return is 13%.

If you can, do the math in Excel with correct referencing to cells with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places - the more the better! Say, 6 or even higher.

Round your answers to whole dollars. Don't use the $ sign.

NOI in year 1 is estimated at $800,000 (given). NOI in year 2 is estimated at $. NOI in year 3 is estimated at $. NOI in year 4 is estimated at $. The reversion value at the end of the 4th year is estimated at $. The current value of the office building is estimated at $.

If the estimated current value of the building is below its asking price, then the net present value (NPV) of this investment is . Type "positive" or "negative".