Athena Investment Company is considering the purchase of an office property. After a careful review of the market and the leases that are in place, Athena has produced the cash flow estimates listed below. Athena plans to own the property for 10 years and, based on a review of sales of properties that are now 10 years older than the subject property, Athena has determined that the going-out cap rate is 10.00%. Athena believes that it should earn an IRR (required return) of at least 11 percent. Required: a. What is the estimated value of this office property? Don't forget to include the present value of the property's reversion value. b. What is the current, or going-in, cap rate for this property? Write this value as a decimal to four decimal places (e.g. 0.0901 and NOT 9.0100%) property's reversion value. b. What is the current, or going-in, cap rate for this property? Write this value as a decimal to four decimal places (e.g0.0901 and NOT 9.0100% ) Complete this question by entering your answers in the tabs below. What is the estimated value of this office property (assume a 0.10 terminal cap rate)? Note: Do not round intermediate calculations. Round your final answer to the nearest dollar amount. property's reversion value. b. What is the current, or going-in, cap rate for this property? Write this value as a decimal to four decimal places (e.g.. 0.0901 and NOT 9.0100% ) Complete this question by entering your answers in the tabs below. What is the current, or going-in, cap rate for this property? Note: Do not round intermediate calculations. Round your final answer to 4 decimal places. Acme investors is considering the purchase of the undeveloped Baker Tract of land. It is currently zoned for agricultural use, if purchased, however. Acme must decide how to have the property rezoned for commercial use and then how to develop the site. Based on its market study. Acme has made estimates for the two uses that it deems possible, that is. office or retall. Based on its estimates, the land could be developed as follows: Required: What is the residual land value for Office? You'll need to know the cash flow and the cap rate to calculate this: What is the residual land value for Retail? Which would be the highest and best use of this site