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 $600,000 at the end of the 1st year, and will then increase by $50,000 each year for 3 more years, after which it will increase by 7% for a few years.

Investor's required return is 14%.

Investor's going-out cap rate is 7%.

Answer the "____" below.

NOI in year 1 is estimated at $600,000 (given). (Round to nearest whole dollar)

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 $____ , and the current value of the office building is estimated at $____

*Round both to whole dollar & ROUND TO NEAREST THOUSAND

If the estimated current value of the building is above its asking price, then the net present value (NPV) of this investment is (Positive/Negative)